10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________________________________

 FORM 10-Q

_______________________________________________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 28, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 001-36353

_______________________________________________

Perrigo Company plc

(Exact name of registrant as specified in its charter)

_______________________________________________

Ireland	Not Applicable
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

The Sharp Building, Hogan Place, Dublin 2, Ireland D02 TY74

+353 1 7094000

(Address, including zip code, and telephone number, including

area code, of registrant’s principal executive offices)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Ordinary shares	PRGO	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.							☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

 ☐  Yes  ☒ No

As of May 1, 2020, there were 136,313,364 ordinary shares outstanding.

PERRIGO COMPANY PLC

FORM 10-Q

INDEX

		PAGE NUMBER
Cautionary Note Regarding Forward-Looking Statements		1
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Statements of Operations		2
Condensed Consolidated Statements of Comprehensive Income (Loss)		3
Condensed Consolidated Balance Sheets		4
Condensed Consolidated Statements of Shareholders' Equity		5
Condensed Consolidated Statements of Cash Flows		6
Notes to the Condensed Consolidated Financial Statements
1	Summary of Significant Accounting Policies	7
2	Revenue Recognition	9
3	Acquisitions	11
4	Goodwill and Intangible Assets	13
5	Inventories	14
6	Fair Value Measurements	14
7	Investments	18
8	Derivative Instruments and Hedging Activities	18
9	Leases	22
10	Indebtedness	24
11	Earnings per Share and Shareholders' Equity	25
12	Accumulated Other Comprehensive Income (Loss)	25
13	Income Taxes	26
14	Contingencies	28
15	Restructuring Charges	42
16	Segment Information	42
17	Subsequent Events	43
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		43
Item 3. Quantitative and Qualitative Disclosures About Market Risk		57
Item 4. Controls and Procedures		57
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		58
Item 1A. Risk Factors		58
Item 6. Exhibits		59
Signatures		60

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this report are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our, or our industry’s actual results, levels of activity, performance or achievements to be materially different from those expressed or implied by any forward-looking statements. In particular, statements about our expectations, beliefs, plans, objectives, assumptions, future events or future performance contained in this report, including certain statements contained in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” are forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” "forecast," “predict,” “potential” or the negative of those terms or other comparable terminology.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control, including: the effect of the novel coronavirus (COVID-19) pandemic and the associated economic downturn and supply chain impacts on the Company's business, the timing, amount and cost of any share repurchases; future impairment charges; customer acceptance of new products; competition from other industry participants, some of whom have greater marketing resources or larger market shares in certain product categories than we do; pricing pressures from customers and consumers; resolution of uncertain tax positions, including the Company's appeal of the Notice of Assessment ("NoA") issued by the Irish Office of the Revenue Commissioners (“Irish Revenue”) and the draft and final Notices of Proposed Adjustment ("NOPAs") issued by the U.S. Internal Revenue Service and the impact that an adverse result in any such proceeding could have on operating results, cash flows and liquidity; potential third-party claims and litigation, including litigation relating to our restatement of previously-filed financial information and litigation relating to uncertain tax positions, including the NoA and NOPAs; potential impacts of ongoing or future government investigations and regulatory initiatives; potential costs and reputational impact of product recalls and sales halts; the impact of tax reform legislation and healthcare policy; general economic conditions; fluctuations in currency exchange rates and interest rates; the consummation of announced acquisitions or dispositions and the success of such transactions, and our ability to realize the desired benefits thereof; and our ability to execute and achieve the desired benefits of announced cost-reduction efforts, and strategic and other initiatives. An adverse result with respect to our appeal of any material outstanding tax assessments or litigation, including securities or drug pricing matters, could ultimately require the use of corporate assets to pay such assessments, damages from third-party claims, and related interest and/or penalties, and any such use of corporate assets would limit the assets available for other corporate purposes. Statements regarding the separation of the RX business, including the expected benefits, anticipated timing, form of any such separation and whether the separation ultimately occurs, are all subject to various risks and uncertainties, including future financial and operating results, our ability to separate the business, the effect of existing interdependencies with our manufacturing and shared service operations, and the tax consequences of the planned separation to us or our shareholders. These and other important factors, including those discussed in our form 10-K for the year-ended December 31, 2019, this report under “Risk Factors” and in any subsequent filings with the United States Securities and Exchange Commission, may cause actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements in this report are made only as of the date hereof, and unless otherwise required by applicable securities laws, we disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

TRADEMARKS, TRADE NAMES AND SERVICE MARKS

This report contains trademarks, trade names and service marks that are the property of Perrigo Company plc, as well as, for informational purposes, trademarks, trade names, and service marks that are the property of other organizations. Solely for convenience, certain trademarks, trade names, and service marks referred to in this report appear without the ^®, ™ and ^SM symbols, but those references are not intended to indicate that we or the applicable owner, as the case may be, will not assert, to the fullest extent under applicable law, our or their rights to such trademarks, trade names, and service marks.

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PART I.     FINANCIAL INFORMATION

ITEM 1.        FINANCIAL STATEMENTS (UNAUDITED)

PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in millions, except per share amounts)

(unaudited)

 

	Three Months Ended
	March 28, 2020			March 30, 2019
Net sales	$	1,341.0		$	1,174.5
Cost of sales	857.8			725.7
Gross profit	483.2			448.8
Operating expenses
Distribution	24.2			23.3
Research and development	41.9			40.2
Selling	147.7			148.6
Administration	122.6			125.1
Impairment charges	—			4.1
Restructuring	—			9.3
Other operating expense (income)	1.1			(4.1		)
Total operating expenses	337.5			346.5
Operating income	145.7			102.3
Change in financial assets	(1.6		)	(10.4		)
Interest expense, net	30.2			28.6
Other (income) expense, net	2.4			3.2
Income before income taxes	114.7			80.9
Income tax expense	8.3			17.0
Net income	$	106.4		$	63.9
Earnings per share
Basic	$	0.78		$	0.47
Diluted	$	0.77		$	0.47
Weighted-average shares outstanding
Basic	136.2			135.9
Diluted	137.3			136.2

See accompanying Notes to the Condensed Consolidated Financial Statements.

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PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(in millions)

(unaudited)

	Three Months Ended
	March 28, 2020			March 30, 2019
Net income	$	106.4		$	63.9
Other comprehensive income (loss):
Foreign currency translation adjustments	(92.2		)	(16.8		)
Change in fair value of derivative financial instruments, net of tax	(9.4		)	1.7
Change in post-retirement and pension liability, net of tax	(1.9		)	(0.5		)
Other comprehensive income (loss), net of tax	(103.5		)	(15.6		)
Comprehensive income	$	2.9		$	48.3

See accompanying Notes to the Condensed Consolidated Financial Statements.

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PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED BALANCE SHEETS

(in millions, except per share amounts)

(unaudited)

	March 28, 2020			December 31, 2019
Assets
Cash and cash equivalents	$	510.4		$	354.3
Accounts receivable, net of allowance for credit losses of $7.1 and $6.7, respectively	1,296.7			1,243.2
Inventories	930.8			967.3
Prepaid expenses and other current assets	308.3			192.1
Total current assets	3,046.2			2,756.9
Property, plant and equipment, net	889.1			902.8
Operating lease assets	124.0			129.9
Goodwill and indefinite-lived intangible assets	4,146.2			4,185.5
Definite-lived intangible assets, net	2,877.7			2,921.2
Deferred income taxes	6.2			5.4
Other non-current assets	311.3			399.7
Total non-current assets	8,354.5			8,544.5
Total assets	$	11,400.7		$	11,301.4
Liabilities and Shareholders’ Equity
Accounts payable	$	555.8		$	520.2
Payroll and related taxes	135.6			156.4
Accrued customer programs	380.4			394.4
Other accrued liabilities	248.6			229.2
Accrued income taxes	26.8			32.2
Current indebtedness	287.8			3.4
Total current liabilities	1,635.0			1,335.8
Long-term debt, less current portion	3,182.9			3,365.8
Deferred income taxes	286.3			280.6
Other non-current liabilities	509.6			515.1
Total non-current liabilities	3,978.8			4,161.5
Total liabilities	5,613.8			5,497.3
Commitments and contingencies - Refer to Note 14
Shareholders’ equity
Controlling interests:
Preferred shares, $0.0001 par value per share, 10 shares authorized	—			—
Ordinary shares, €0.001 par value per share, 10,000 shares authorized	7,339.6			7,359.9
Accumulated other comprehensive income	35.9			139.4
Retained earnings (accumulated deficit)	(1,589.1		)	(1,695.5		)
Total controlling interests	5,786.4			5,803.8
Noncontrolling interest	0.5			0.3
Total shareholders’ equity	5,786.9			5,804.1
Total liabilities and shareholders' equity	$	11,400.7		$	11,301.4
Supplemental Disclosures of Balance Sheet Information
Preferred shares, issued and outstanding	—			—
Ordinary shares, issued and outstanding	136.3			136.1

See accompanying Notes to the Condensed Consolidated Financial Statements.

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PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(in millions, except per share amounts)

(unaudited)

	Ordinary Shares Issued					Accumulated Other Comprehensive Income			Retained Earnings (Accumulated Deficit)			Total
	Shares		Amount
Balance at December 31, 2018	135.9		$	7,421.7		$	84.6		$	(1,838.3	)	$	5,668.0
Adoption of new accounting standards	—		—			—			(3.4		)	(3.4		)
Net income	—		—			—			63.9			63.9
Other comprehensive loss	—		—			(15.6		)	—			(15.6		)
Restricted stock plan	0.2		—			—			—			—
Compensation for stock options	—		1.8			—			—			1.8
Compensation for restricted stock	—		14.2			—			—			14.2
Cash dividends, $0.19 per share	—		(25.9		)	—			—			(25.9		)
Shares withheld for payment of employees' withholding tax liability	(0.1	)	(2.4		)	—			—			(2.4		)
Balance at March 30, 2019	136.0		$	7,409.4		$	69.0		$	(1,777.8	)	$	5,700.6

	Ordinary Shares Issued					Accumulated Other Comprehensive Income			Retained Earnings (Accumulated Deficit)			Total
	Shares		Amount
Balance at December 31, 2019	136.1		$	7,359.9		$	139.4		$	(1,695.5	)	$	5,803.8
Net income	—		—			—			106.4			106.4
Other comprehensive loss	—		—			(103.5		)	—			(103.5		)
Restricted stock plan	0.3		—			—			—			—
Compensation for stock options	—		0.8			—			—			0.8
Compensation for restricted stock	—		15.4			—			—			15.4
Cash dividends, $0.23 per share	—		(30.9		)	—			—			(30.9		)
Shares withheld for payment of employees' withholding tax liability	(0.1	)	(5.6		)	—			—			(5.6		)
Balance at March 28, 2020	136.3		$	7,339.6		$	35.9		$	(1,589.1	)	$	5,786.4

See accompanying Notes to the Condensed Consolidated Financial Statements.

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PERRIGO COMPANY PLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in millions)

(unaudited)

	Three Months Ended
	March 28, 2020			March 30, 2019
Cash Flows From (For) Operating Activities
Net income	$	106.4		$	63.9
Adjustments to derive cash flows:
Depreciation and amortization	93.1			96.6
Share-based compensation	16.2			12.4
Impairment charges	—			4.1
Change in financial assets	(1.6		)	(10.4		)
Restructuring charges	—			9.3
Deferred income taxes	6.7			3.9
Amortization of debt premium	(0.7		)	(1.9		)
Other non-cash adjustments, net	(14.0		)	13.4
Subtotal	206.1			191.3
Increase (decrease) in cash due to:
Accounts receivable	(67.6		)	(48.5		)
Inventories	36.5			(37.5		)
Prepaid expenses	(33.4		)	(3.7		)
Accounts payable	53.8			75.4
Payroll and related taxes	(18.4		)	(19.9		)
Accrued customer programs	(13.6		)	(61.7		)
Accrued liabilities	11.1			(3.8		)
Accrued income taxes	3.8			(10.0		)
Other, net	(6.5		)	12.9
Subtotal	(34.3		)	(96.8		)
Net cash from operating activities	171.8			94.5
Cash Flows From (For) Investing Activities
Proceeds from royalty rights	1.8			1.2
Acquisitions of businesses, net of cash acquired	(11.3		)	—
Proceeds from the Royalty Pharma contingent milestone	—			250.0
Asset acquisitions	(32.7		)	—
Additions to property, plant and equipment	(33.8		)	(21.1		)
Other investing, net	1.2			—
Net cash from (for) investing activities	(74.8		)	230.1
Cash Flows From (For) Financing Activities
Payments on long-term debt	—			(12.3		)
Borrowings (repayments) of revolving credit agreements and other financing, net	102.0			(0.3		)
Cash dividends	(30.9		)	(25.9		)
Other financing, net	(6.4		)	(3.1		)
Net cash from (for) financing activities	64.7			(41.6		)
Effect of exchange rate changes on cash and cash equivalents	(5.6		)	3.8
Net increase (decrease) in cash and cash equivalents	156.1			286.8
Cash and cash equivalents, beginning of period	354.3			551.1
Cash and cash equivalents, end of period	$	510.4		$	837.9

See accompanying Notes to the Condensed Consolidated Financial Statements.

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Note 1

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information

The Company

Perrigo Company plc was incorporated under the laws of Ireland on June 28, 2013 and became the successor registrant of Perrigo Company, a Michigan corporation, on December 18, 2013 in connection with the acquisition of Elan Corporation, plc ("Elan"). Unless the context requires otherwise, the terms "Perrigo," the "Company," "we," "our," "us," and similar pronouns used herein refer to Perrigo Company plc, its subsidiaries, and all predecessors of Perrigo Company plc and its subsidiaries.

We are dedicated to making lives better by bringing Quality, Affordable Self-Care Products that consumers trust everywhere they are sold. We are a leading provider of over-the-counter ("OTC") health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. We are also a leading producer of generic prescription pharmaceutical topical products such as creams, lotions, and gels as well as nasal sprays and inhalers.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation of the unaudited Condensed Consolidated Financial Statements have been included and include our accounts and the accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Segment Reporting

Our reporting and operating segments are as follows:

• Consumer Self-Care Americas ("CSCA") comprises our consumer self-care business (OTC, contract manufacturing, infant formula, and oral self-care categories and our divested animal health category) in the U.S., Mexico and Canada.

• Consumer Self-Care International ("CSCI") comprises our branded consumer self-care business primarily in Europe, our consumer self-care businesses in the United Kingdom and Australia, and our liquid licensed products business in the United Kingdom.

• Prescription Pharmaceuticals ("RX") comprises our prescription pharmaceuticals business in the U.S., predominantly generics, and our pharmaceuticals and diagnostic businesses in Israel.

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Note 1

Recent Accounting Standard Pronouncements

Below are recent Accounting Standard Updates ("ASU") that we are still assessing to determine the effect on our Condensed Consolidated Financial Statements. We do not believe that any other recently issued accounting standards could have a material effect on our Condensed Consolidated Financial Statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

Recently Issued Accounting Standards Not Yet Adopted
Standard	Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
ASU 2018-14: Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans	This guidance amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other post-retirement plans.	December 31, 2020	We are currently evaluating the implications of adoption to related disclosures in our Consolidated Financial Statements.
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes	This guidance enhances and simplifies various aspects of the income tax accounting guidance in ASC 740.	January 1, 2021	We are currently evaluating the implications of adoption on our Consolidated Financial Statements.

Recently Adopted Accounting Standard Update

On January 1, 2020, we adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326"), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the Current Expected Credit Loss ("CECL") methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost.

We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, which includes trade receivables and contract assets. The cumulative effect of adopting ASC 326 was not material.

Allowance for Credit Losses

Expected credit losses on trade receivables and contract assets are measured collectively by geographic location. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and for reasonable and supportable forecasts. Historical credit loss experience provides the primary basis for estimation of expected credit losses. Adjustments to historical loss information may be made for significant changes in a geographic location’s economic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis. These receivables are not included in the collective evaluation.

The allowance for credit losses is a valuation account that is deducted from the instruments’ cost basis to present the net amount expected to be collected. Trade receivables and contract assets are charged off against the allowance when the balance is no longer deemed collectible.

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Note 1

The following table presents the allowance for credit losses activity (in millions):

	Three Months Ended
	March 28, 2020
Beginning balance	$	6.7
Provision for credit losses	0.8
Receivables written-off	(0.1		)
Recoveries collected	—
Currency translation adjustment	(0.3		)
Ending balance	$	7.1

NOTE 2 – REVENUE RECOGNITION

Revenue is recognized when or as a customer obtains control of promised products. The amount of revenue recognized reflects the consideration we expect to be entitled to receive in exchange for these products.

Disaggregation of Revenue

We generated net sales in the following geographic locations⁽¹⁾ (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
U.S.	$	901.6	$	768.8
Europe(2)	372.6		340.9
All other countries(3)	66.8		64.8
Total net sales	$	1,341.0	$	1,174.5

(1) Derived from the location of the entity that sells to a third party.

(2) Includes Ireland net sales of $3.8 million and $5.2 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

(3) Includes net sales generated primarily in Israel, Mexico, Australia and Canada.

Product Category

We re-aligned our product categories in our CSCA and CSCI segments as of December 31, 2019. The re-alignment standardizes our categories and product level detail to provide consistency. This transformative step will optimize the way in which management reports and evaluates our business.

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Note 2

The following is a summary of our net sales by category (in millions); the comparative period reflects the product category re-alignment:

	Three Months Ended
	March 28, 2020		March 30, 2019
CSCA(1)
Upper respiratory	$	154.6	$	132.8
Pain and sleep-aids	120.4		91.3
Digestive health	106.9		102.3
Nutrition	102.2		99.6
Healthy lifestyle	85.8		76.0
Oral self-care	55.3		—
Skincare and personal hygiene	46.7		45.5
Vitamins, minerals, and supplements	6.4		6.3
Animal health	—		19.6
Other CSCA(2)	22.3		8.4
Total CSCA	700.6		581.8
CSCI
Skincare and personal hygiene	94.7		101.9
Upper respiratory	84.1		71.9
Vitamins, minerals, and supplements	48.5		45.8
Pain and sleep-aids	46.8		40.4
Healthy lifestyle	43.6		47.3
Oral self-care	23.2		1.6
Digestive health	6.0		7.2
Other CSCI(3)	35.8		34.7
Total CSCI	382.7		350.8
RX	257.7		241.9
Total net sales	$	1,341.0	$	1,174.5

(1)    Includes net sales from our OTC contract manufacturing business.

(2) Consists primarily of diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.    

(3) Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, 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 $49.5 million and $67.3 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

We also recognize a portion of the store brand OTC product revenues in the CSCA segment on an over time basis; however, the timing difference between over time and point in time revenue recognition for store brand contracts is not significant due to the short time period between the customization of the product and shipment or delivery.

Contract Balances

The following table provides information about contract assets from contracts with customers (in millions):

	Balance Sheet Location	March 28, 2020		December 31, 2019
Short-term contract assets	Prepaid expenses and other current assets	$	28.1	$	26.3

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Note 3

NOTE 3 – ACQUISITIONS

Acquisitions During the Three Months Ended March 28, 2020

Dexsil^® 

On February 13, 2020, we acquired Dexsil^®, a silicon supplement brand, from RXW Group Nv, for total cash consideration paid of approximately $8.0 million. The transaction was accounted for as an asset acquisition, in which we capitalized the consideration paid as a brand-named intangible asset. We began amortizing the brand intangible over a 25-year useful life. Operating results attributable to the product are included within our CSCI segment.

Steripod^® 

On January 3, 2020, we acquired Steripod^®, a leading toothbrush accessory brand and innovator in the toothbrush protector market, from Bonfit America Inc. Total consideration paid was $26.0 million, subject to customary post-closing adjustments. The transaction was accounted for as an asset acquisition, in which we capitalized $24.9 million as a brand-named intangible asset. The remainder of the purchase price was allocated to working capital. We began amortizing the brand intangible over a 25-year useful life. Operating results attributable to the product are included within our CSCA segment.

Acquisition Accounted for as a Business Combination During the Year Ended December 31, 2019

Ranir Global Holdings, LLC

On July 1, 2019, we acquired 100% of the outstanding equity interest in Ranir Global Holdings, LLC ("Ranir"), a privately-held company, for total base consideration of $750.0 million in a debt-free, cash-free transaction. After post-closing adjustments, total cash consideration paid was $747.7 million, net of $11.5 million cash acquired. We funded the transaction with cash on hand and borrowings under the 2018 Revolver (as defined in Note 10).

Ranir is headquartered in Grand Rapids, Michigan and is a leading global supplier of private label and branded oral self-care products. Ranir's U.S. operations are reported in our CSCA segment and its non-U.S. operations are reported in our CSCI segment.

The acquisition of Ranir was accounted for as a business combination and has been reported in our Consolidated Statements of Operations as of the acquisition date. From July 1, 2019 through December 31, 2019, Ranir generated Net sales of $151.4 million and had $7.6 million of Net income, which is inclusive of a non-recurring charge of $5.7 million related to inventory costs stepped up to acquisition date fair value.

We are in the process of finalizing the allocation of goodwill to Ranir's respective tax jurisdictions. As a result, the deferred tax balance sheet amounts remain subject to adjustments once the allocation is complete. The provisional acquisition amounts recognized for deferred taxes will be finalized as soon as possible but no later than one year from the acquisition date. The final determination may result in tax bases that differ from the preliminary amount of deferred taxes and goodwill recognized.

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Note 3

The following table summarizes the consideration paid for Ranir and the provisional amounts of the assets acquired and liabilities assumed (in millions):

	Ranir
Purchase price paid	$	759.2
Assets acquired:
Cash and cash equivalents	$	11.5
Accounts receivable	40.6
Inventories	59.0
Prepaid expenses and other current assets	4.0
Property, plant and equipment, net	40.8
Operating lease assets	3.7
Goodwill	291.1
Definite-lived intangibles:
Developed product technology, formulations, and product rights	$	48.6
Customer relationships and distribution networks	260.0
Trademarks, trade names, and brands	41.0
Indefinite-lived intangibles:
In-process research and development	39.7
Total intangible assets	$	389.3
Other non-current assets	2.7
Total assets	$	842.7
Liabilities assumed:
Accounts payable	$	17.6
Other accrued liabilities	7.7
Payroll and related taxes	5.5
Accrued customer programs	5.7
Deferred income taxes	44.2
Other non-current liabilities	2.8
Total liabilities	$	83.5
Net assets acquired	$	759.2

The goodwill of $291.1 million arising from the acquisition consists largely of the anticipated growth from new product sales, sales to new customers, the assembled workforce, and the synergies expected from combining the operations of Perrigo and Ranir. Preliminarily, goodwill of $212.2 million and $78.9 million was allocated to our CSCA and CSCI segments, respectively. We are currently evaluating the tax deductibility of the provisional goodwill. We expect some portion to be deductible for income tax purposes. The definite-lived intangible assets acquired consisted of trademarks and trade names, developed product technologies, and customer relationships. Trademarks and trade names were assigned useful lives that ranged from 20 to 25 years. Developed product technologies were assigned 10-year useful lives and customer relationships were assigned 24-year useful lives. Customer relationships were valued using the multi-period excess earnings method. Trademarks and trade names, developed technology, and in-process research and development ("IPR&D") were valued using the relief from royalty method. Significant judgment was applied in estimating the fair value of the intangible assets acquired, which involved the use of significant estimates and assumptions with respect to the timing and amounts of cash flow projections, including revenue growth rates, projected profit margins, and discount rates.

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Note 3

Pro Forma Impact of Ranir Acquisition

The following table presents unaudited pro forma information as if the Ranir acquisition had occurred on January 1, 2018 and had been combined with the results reported in our Condensed Consolidated Statements of Operations for all periods presented (in millions):

	Three Months Ended
(Unaudited)	March 30, 2019
Net sales	$	1,248.4
Net income	$	70.7

The unaudited pro forma information is presented for information purposes only and is not indicative of the results that would have been achieved if the acquisition had taken place at such time. The unaudited pro forma information presented above includes adjustments primarily for amortization charges for acquired intangible assets, depreciation of property, plant and equipment that have been revalued, certain acquisition-related charges, and related tax effects.

NOTE 4 – GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):

	December 31, 2019		Purchase accounting adjustments			Currency translation adjustments			March 28, 2020
CSCA	$	1,899.1	$	(10.8	)	$	(5.7	)	$	1,882.6
CSCI(1)	1,203.7		10.8			(17.8		)	1,196.7
RX(2)	1,013.9		—			(3.2		)	1,010.7
Total goodwill	$	4,116.7	$	—		$	(26.7	)	$	4,090.0

(1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and March 28, 2020.

(2) We had accumulated goodwill impairments of $109.2 million as of December 31, 2019 and March 28, 2020.

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Note 4

Intangible Assets

Intangible assets and related accumulated amortization consisted of the following (in millions):

	March 28, 2020				December 31, 2019
	Gross		Accumulated Amortization		Gross		Accumulated Amortization
Indefinite-lived intangibles:
Trademarks, trade names, and brands	$	17.6	$	—	$	18.8	$	—
In-process research and development	38.6		—		50.0		—
Total indefinite-lived intangibles	$	56.2	$	—	$	68.8	$	—
Definite-lived intangibles:
Distribution and license agreements and supply agreements	$	133.5	$	82.6	$	126.7	$	81.1
Developed product technology, formulations, and product rights	1,393.5		770.2		1,392.8		755.3
Customer relationships and distribution networks	1,792.6		694.5		1,805.6		671.4
Trademarks, trade names, and brands	1,370.7		265.7		1,353.5		250.1
Non-compete agreements	6.4		6.0		6.5		6.0
Total definite-lived intangibles	$	4,696.7	$	1,819.0	$	4,685.1	$	1,763.9
Total intangible assets	$	4,752.9	$	1,819.0	$	4,753.9	$	1,763.9

We recorded amortization expense of $73.1 million and $75.4 million for the three months ended March 28, 2020, and March 30, 2019, respectively.

We recorded an impairment charge of $4.1 million on a certain IPR&D asset during the three months ended March 30, 2019 due to changes in projected development and regulatory timelines.

NOTE 5 – INVENTORIES

Major components of inventory were as follows (in millions):

 

	March 28, 2020		December 31, 2019
Finished goods	$	485.8	$	530.3
Work in process	188.8		186.9
Raw materials	256.2		250.1
Total inventories	$	930.8	$	967.3

NOTE 6 – FAIR VALUE MEASUREMENTS

On January 1, 2020, we adopted ASU 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU remove disclosure requirements in Topic 820 related to the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. Additionally, the ASU adds disclosure requirements for the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We have amended certain of our quantitative Level 3 fair value measurement disclosures to add the range and weighted average of significant unobservable inputs used.

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Note 6

The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):

	March 28, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Measured at fair value on a recurring basis:
Assets:
Investment securities	$	3.7	$	—	$	—	$	6.6	$	—	$	—
Foreign currency forward contracts	—		11.1		—		—		4.3		—
Cross-currency swap	—		11.4		—		—		26.3		—
Funds associated with Israeli severance liability	—		13.6		—		—		14.6		—
Royalty Pharma contingent milestone	—		—		96.9		—		—		95.3
Total assets	$	3.7	$	36.1	$	96.9	$	6.6	$	45.2	$	95.3
Liabilities:
Foreign currency forward contracts	$	—	$	13.7	$	—	$	—	$	8.4	$	—
Contingent consideration payments	—		—		13.0		—		—		11.9
Total liabilities	$	—	$	13.7	$	13.0	$	—	$	8.4	$	11.9
Measured at fair value on a non-recurring basis:
Assets:
Goodwill(1)	$	—	$	—	$	—	$	—	$	—	$	1,013.1
Definite-lived intangible assets(2)	—		—		—		—		—		23.3
Total assets	$	—	$	—	$	—	$	—	$	—	$	1,036.4

(1) During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million.

(2) During the year ended December 31, 2019, definite-lived intangible assets with a carrying amount of $55.3 million were written down to a fair value of $23.3 million.

There were no transfers within Level 3 fair value measurements during the three months ended March 28, 2020 or the year ended December 31, 2019.

Royalty Pharma Contingent Milestone Receipts

The table below summarizes the change in fair value of the Royalty Pharma contingent milestone (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Beginning balance	$	95.3	$	323.2
Payments received	—		(250.0		)
Change in fair value	1.6		10.4
Ending balance	$	96.9	$	83.6

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Note 6

We value our contingent milestone payment from Royalty Pharma using a modified Black-Scholes Option Pricing Model ("BSOPM"). Key inputs in the BSOPM are the estimated volatility and rate of return of royalties on global net sales of Tysabri^® that are received by Royalty Pharma until the contingent milestones are resolved. As of March 28, 2020, volatility and the estimated fair value of the milestones had a positive relationship such that higher volatility translates to a higher estimated fair value of the contingent milestone payments. Rate of return and the estimated fair value of the milestones had an inverse relationship, such that a lower rate of return correlates with a higher estimated fair value of the contingent milestone payments. We assess volatility and rate of return inputs quarterly by analyzing certain market volatility benchmarks and the risk associated with Royalty Pharma achieving the underlying projected royalties. The table below represents the volatility and rate of return:

	Three Months Ended
	March 28, 2020		March 30, 2019
Volatility	35.0	%	30.0	%
Rate of return	7.29	%	8.02	%

During the three months ended March 28, 2020 the fair value of the Royalty Pharma contingent milestone payment related to 2020 increased by $1.6 million to $96.9 million, which is recorded on the Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets. The adjustment was driven by higher volatility, higher projected global net sales of Tysabri^® compared to the estimates in the prior period, and the estimated probability of achieving the earn-out. During the three months ended March 30, 2019 the fair value of the Royalty Pharma contingent milestone payments increased by $10.4 million driven by higher projected global net sales of Tysabri^® and the estimated probability of achieving the earn-out.

The Royalty Pharma payments from Biogen for Tysabri^® were $337.5 million in 2018, which triggered the $250.0 million milestone payment received during the first quarter of 2019. There is no contingent milestone based on 2019 sales of Tysabri^®. In order for us to receive the remaining contingent milestone payment of $400.0 million, Royalty Pharma payments from Biogen for Tysabri^® sales in 2020 must exceed $351.0 million. If Royalty Pharma payments from Biogen for Tysabri^® sales do not meet the prescribed threshold in 2020, we will write off the $96.9 million asset and record a loss. If the prescribed threshold is exceeded, we will increase the asset to $400.0 million and recognize income of $303.1 million in Change in financial assets on the Condensed Consolidated Statements of Operations.

Contingent Consideration Payments

The table below summarizes the change in fair value of contingent consideration payments (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Beginning balance	$	11.9	$	15.3
Changes in value	1.1		1.2
Settlements and other adjustments	—		(4.1		)
Ending balance	$	13.0	$	12.4

Contingent consideration represents milestone payment obligations obtained through product acquisitions, which are valued using estimates based on probability-weighted outcomes, sensitivity analysis, and discount rates reflective of the risk involved. The estimates are updated quarterly and the liabilities are adjusted to fair value depending on a number of assumptions, including the competitive landscape and regulatory approvals that may impact the future sales of a product.

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Note 6

As of March 28, 2020, the contingent consideration payments liability was primarily comprised of sales-based milestones related to an IPR&D asset acquired in a prior transaction in our RX segment. The contingent consideration payments liability also included certain event-based milestones, which were immaterial. The fair value of our contingent consideration sales-based milestones as of March 28, 2020, was calculated using the following significant unobservable inputs:

			Three Months Ended
			March 28, 2020
	Valuation Technique	Unobservable Input	Range (Weighted Average)(1)
Contingent consideration payments: sales-based milestones	Discounted cash flow	Projected royalties	$	105.0
		Projected year of payment of sales-based milestones	2020 - 2035 (2028)
		Discount rate	52.5		%

(1) Unobservable inputs were weighted based on the relative estimated milestone payments.

The discount rate of 52.5% was based on our assessment of the rate of return and development and commercialization risk of the related IPR&D project. We reevaluate the significant unobservable inputs of the sales-based milestones quarterly based on project developments and changes in contingent elements of the liability.

Fixed Rate Long-term Debt    

Our fixed rate long-term debt consisted of the following (in millions):

	March 28, 2020				December 31, 2019
	Level 1		Level 2		Level 1		Level 2
Public Bonds
Carrying Value (excluding discount)	$	2,600.0	—		$	2,600.0	—
Fair value	$	2,482.5	—		$	2,618.4	—
Private placement note
Carrying value (excluding premium)	—		$	150.5	—		$	151.4
Fair value	—		$	153.6	—		$	168.4

The fair values of our public bonds for all periods were based on quoted market prices. The fair values of our private placement note for all periods were based on interest rates offered for borrowings of a similar nature and remaining maturities.

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.

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Note 7

NOTE 7 – INVESTMENTS

The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions):

Measurement Category	Balance Sheet Location	March 28, 2020		December 31, 2019
Fair value method	Prepaid expenses and other current assets	$	3.7	$	6.6
Fair value method(1)	Other non-current assets	$	2.3	$	2.3
Equity method	Other non-current assets	$	18.5	$	17.8

(1) Measured at fair value using the Net Asset Value practical expedient.

The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions):

		Three Months Ended
Measurement Category	Income Statement Location	March 28, 2020			March 30, 2019
Fair value method	Other (income) expense, net	$	2.9		$	6.1
Equity method	Other (income) expense, net	$	(0.7	)	$	(0.7	)

NOTE 8 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Cross Currency Swaps

We entered into a cross-currency swap designated as a net investment hedge on August 15, 2019, to hedge the EUR currency exposure of our net investment in European operations. This agreement is a contract to exchange floating-rate Euro payments for floating-rate U.S. dollar payments. The payments are based on a notional basis of €450.0 million ($498.0 million) and settle quarterly.

Interest Rate Swaps

There were no active designated or non-designated interest rate swaps as of March 28, 2020 and December 31, 2019.

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Note 8

Foreign Currency Forwards

Foreign currency forward contracts were as follows (in millions):

	Notional Amount
	March 28, 2020		December 31, 2019
Israeli Shekel (ILS)	$	288.3	$	712.7
European Euro (EUR)	150.5		157.6
British Pound (GBP)	79.7		86.9
United States Dollar (USD)	55.9		92.4
Danish Krone (DKK)	52.4		51.7
Canadian Dollar (CAD)	27.4		41.3
Chinese Yuan (CNY)	14.6		20.9
Swedish Krona (SEK)	14.0		42.0
Mexican Peso (MPX)	12.5		9.7
Polish Zloty (PLZ)	7.8		21.5
Switzerland Franc (CHF)	4.4		4.1
Romanian New Leu (RON)	0.4		2.3
Norwegian Krone (NOK)	0.3		6.6
Other	4.7		7.5
Total	$	712.9	$	1,257.2

The maximum term of our forward currency exchange contracts is 18 months.

Effects of Derivatives on the Financial Statements

The below tables indicate the effects of all derivative instruments on the Condensed Consolidated Financial Statements. All amounts exclude income tax effects.

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

		Asset Derivatives
		Fair Value
	Balance Sheet Location	March 28, 2020		December 31, 2019
Designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	5.3	$	1.0
Cross-currency swap	Prepaid expenses and other current assets	11.4		26.3
Total designated derivatives		$	16.7	$	27.3
Non-designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	5.8	$	3.3

		Liability Derivatives
		Fair Value
	Balance Sheet Location	March 28, 2020		December 31, 2019
Designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	10.9	$	4.7
Non-designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	2.8	$	3.7

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Note 8

The following tables summarize the effect of derivative instruments designated as hedging instruments in Accumulated Other Comprehensive Income ("AOCI") (in millions):

	Three Months Ended
	March 28, 2020
Instrument	Amount of Gain/(Loss) Recorded in OCI(1)			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements	$	—		Interest expense, net	$	(0.4	)	Interest expense, net	$	—
Foreign currency forward contracts	7.0			Net sales	(0.4		)	Net sales	—
				Cost of sales	(0.6		)	Cost of sales	0.4
	$	7.0			$	(1.4	)		$	0.4
Net investment hedges:
Cross-currency swap	$	(15.0	)					Interest expense, net	$	2.8

(1) Net gain of $5.1 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

	Three Months Ended
	March 30, 2019
Instrument	Amount of Gain/(Loss) Recorded in OCI			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements	$	—		Interest expense, net	$	(0.4	)	Interest expense, net	$	—
Foreign currency forward contracts	(1.0		)	Net sales	0.2			Net sales	(0.1		)
				Cost of sales	(1.3		)	Cost of sales	(1.1		)
	$	(1.0	)		$	(1.5	)		$	(1.2	)

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Note 8

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

		Three Months Ended
Non-Designated Derivatives	Income Statement Location	March 28, 2020		March 30, 2019
Foreign currency forward contracts	Other (income) expense, net	$	10.4	$	(8.8	)
	Interest expense, net	1.7		0.4
		$	12.1	$	(8.4	)

The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships were as follows (in millions):

	Three Months Ended
	March 28, 2020
	Net Sales			Cost of Sales			Interest Expense, net			Other (Income) Expense, net
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	$	1,341.0		$	857.8		$	30.2		$	2.4
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	(0.4	)	$	(0.6	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	—		$	0.4		$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—		$	—		$	(0.4	)	$	—

	Three Months Ended
	March 30, 2019
	Net Sales			Cost of Sales			Interest Expense, net			Other (Income) Expense, net
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	$	1,174.5		$	725.7		$	28.6		$	3.2
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	0.2		$	(1.3	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.1	)	$	(1.1	)	$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—		$	—		$	(0.4	)	$	—

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Note 9

NOTE 9 – LEASES

The balance sheet locations of our lease assets and liabilities were as follows (in millions):

Assets	Balance Sheet Location	March 28, 2020		December 31, 2019
Operating	Operating lease assets	$	124.0	$	129.9
Finance	Other non-current assets	27.9		27.6
Total		$	151.9	$	157.5

Liabilities	Balance Sheet Location	March 28, 2020		December 31, 2019
Current
Operating	Other accrued liabilities	$	30.9	$	32.0
Finance	Current indebtedness	5.7		3.4
Non-Current
Operating	Other non-current liabilities	96.8		101.7
Finance	Long-term debt, less current portion	19.3		21.1
Total		$	152.7	$	158.2

The below table shows our lease assets and liabilities by reporting segment (in millions):

	Assets								Liabilities
	Operating				Financing				Operating				Financing
	March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019
CSCA	$	21.4	$	22.4	$	16.4	$	16.8	$	21.5	$	22.8	$	16.4	$	16.6
CSCI	39.3		41.6		5.7		5.8		40.3		42.4		2.7		2.9
RX	33.5		35.1		0.7		0.8		34.7		36.3		0.7		0.8
Unallocated	29.8		30.8		5.1		4.2		31.2		32.2		5.2		4.2
Total	$	124.0	$	129.9	$	27.9	$	27.6	$	127.7	$	133.7	$	25.0	$	24.5

Lease expense was as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Operating leases(1)	$	11.4	$	12.0
Finance leases
Amortization	$	1.1	$	0.7
Interest	0.2		0.1
Total finance leases	$	1.3	$	0.8

(1) Includes short-term leases and variable lease costs, which are immaterial.

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Note 9

The annual future maturities of our leases as of March 28, 2020 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2020	$	27.4	$	3.4	$	30.8
2021	28.2		5.8		34.0
2022	21.0		3.2		24.2
2023	15.6		1.8		17.4
2024	12.3		1.4		13.7
After 2024	41.5		14.2		55.7
Total lease payments	146.0		29.8		175.8
Less: Interest	18.3		4.8		23.1
Present value of lease liabilities	$	127.7	$	25.0	$	152.7

Our weighted average lease terms and discount rates are as follows:

	March 28, 2020
Weighted-average remaining lease term (in years)
Operating leases	6.50
Finance leases	9.90
Weighted-average discount rate
Operating leases	4.06	%
Finance leases	3.41	%

Our lease cash flow classifications are as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	10.7	$	11.7
Operating cash flows for finance leases	$	0.2	$	0.1
Financing cash flows for finance leases	$	1.0	$	0.7
Leased assets obtained in exchange for new finance lease liabilities	$	1.5	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	5.5	$	4.7

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Perrigo Company plc - Item 1

Note 10

NOTE 10 – INDEBTEDNESS

Total borrowings outstanding are summarized as follows (in millions):

			March 28, 2020			December 31, 2019
Revolving Credit Agreement
	2018 Revolver due March 8, 2023		$	100.0		$	—
Term loan
	2019 Term loan due August 15, 2022		600.0			600.0
Notes and Bonds
	Coupon	Due
	3.500%	March 15, 2021	280.4			280.4
	3.500%	December 15, 2021	309.6			309.6
	5.105%	July 28, 2023(1)	150.5			151.4
	4.000%	November 15, 2023	215.6			215.6
	3.900%	December 15, 2024	700.0			700.0
	4.375%	March 15, 2026	700.0			700.0
	5.300%	November 15, 2043	90.5			90.5
	4.900%	December 15, 2044	303.9			303.9
	Total notes and bonds		2,750.5			2,751.4
Other financing			27.1			24.6
Unamortized premium (discount), net			6.5			7.3
Deferred financing fees			(13.4		)	(14.1		)
Total borrowings outstanding			3,470.7			3,369.2
	Current indebtedness		(287.8		)	(3.4		)
Total long-term debt less current portion			$	3,182.9		$	3,365.8

(1) Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate.

We are in compliance with all covenants under our debt agreements as of March 28, 2020.

Revolving Credit Agreements

On March 8, 2018, we entered into a $1.0 billion revolving credit agreement maturing on March 8, 2023 (the "2018 Revolver"). There were $100.0 million of borrowings outstanding under the 2018 Revolver as of March 28, 2020. There were no borrowings outstanding under the 2018 Revolver as of December 31, 2019.

Term Loans

On March 8, 2018, we refinanced the €350.0 million outstanding under the previous term loan with the proceeds of a new €350.0 million ($431.0 million) term loan, maturing on March 8, 2020 (the "2018 Term Loan"). During the year ended December 31, 2019, we made $24.7 million in scheduled principal repayments on the 2018 Term Loan.

On August 15, 2019, we refinanced the €284.4 million ($317.1 million) outstanding under the 2018 Term Loan with the proceeds of a new $600.0 million term loan (the "2019 Term Loan"), maturing on August 15, 2022.

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Note 10

Other Financing

We have overdraft facilities available that we use to support our cash management operations. We report any balances outstanding in the above table under "Other financing". The balance outstanding under the facilities was $2.0 million as of March 28, 2020. There were no borrowings outstanding under the facilities as of December 31, 2019.

We have financing leases that are reported in the above table under "Other financing" (refer to Note 9).

NOTE 11 – EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY

Earnings per Share

A reconciliation of the numerators and denominators used in the basic and diluted earnings per share ("EPS") calculation is as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Numerator:
Net income	$	106.4	$	63.9
Denominator:
Weighted average shares outstanding for basic EPS	136.2		135.9
Dilutive effect of share-based awards	1.1		0.3
Weighted average shares outstanding for diluted EPS	137.3		136.2
Anti-dilutive share-based awards excluded from computation of diluted EPS	1.7		2.1

Shareholders' Equity

Share Repurchases

Following the expiration of our 2015 share repurchase plan authorization, in October 2018, our Board of Directors authorized up to $1.0 billion of share repurchases with no expiration date, subject to the Board of Directors’ approval of the pricing parameters and amount that may be repurchased under each specific share repurchase program. We did not repurchase any shares during the three months ended March 28, 2020 and March 30, 2019.

NOTE 12 – ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in our AOCI balances, net of tax were as follows (in millions):

	Fair Value of Derivative Financial Instruments, net of tax			Foreign Currency Translation Adjustments			Post-Retirement and Pension Liability Adjustments, net of tax			Total AOCI
Balance at December 31, 2019	$	12.7		$	132.9		$	(6.2	)	$	139.4
OCI before reclassifications	(8.0		)	(92.2		)	(1.9		)	(102.1		)
Amounts reclassified from AOCI	(1.4		)	—			—			(1.4		)
Other comprehensive income (loss)	$	(9.4	)	$	(92.2	)	$	(1.9	)	$	(103.5	)
Balance at March 28, 2020	$	3.3		$	40.7		$	(8.1	)	$	35.9

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Note 13

NOTE 13 – INCOME TAXES

The effective tax rates were as follows:

Three Months Ended
March 28, 2020		March 30, 2019
7.2	%	21.1	%

The effective tax rate for the three months ended March 28, 2020 decreased compared to the prior period primarily due to additional interest and depreciation deductions provided for in the U.S. Coronavirus Aid, Relief, and Economic Security ("CARES") Act.

IRS Audit of Fiscal Years Ended June 29, 2013, June 28, 2014, and June 27, 2015    

On August 22, 2019, we received a draft Notice of Proposed Adjustment (“NOPA”) from the IRS with respect to our fiscal tax years ended June 28, 2014 and June 27, 2015 relating to the deductibility of interest on $7.5 billion in debts owed to Perrigo Company plc by Perrigo Company, a Michigan corporation and wholly-owned indirect subsidiary of Perrigo Company, plc. The debts were incurred in connection with the Elan merger transaction in 2013. The draft NOPA would cap the interest rate on the debts for U.S. federal tax purposes at 130.0% of the Applicable Federal Rate (a blended rate reduction of 4.0% per annum from the rates agreed to by the parties), on the stated ground that the loans were not negotiated on an arms’-length basis. As a result of the proposed interest rate reduction, the draft NOPA proposes a reduction in gross interest expense of approximately $480.0 million for fiscal years 2014 and 2015. If the IRS were to prevail in its proposed adjustment, we estimate an increase in tax expense for such fiscal years of approximately $170.0 million, excluding interest and penalties. In addition, we would expect the IRS to seek similar adjustments for the period from June 28, 2015 through December 31, 2019. If those further adjustments were sustained, based on our preliminary calculations and subject to further analysis, our current best estimate is that the additional tax expense would not exceed $200.0 million, excluding interest and penalties, for the period June 28, 2015 through December 31, 2019. We do not expect any similar adjustments beyond December 31, 2019 as proposed regulations, issued under section 267A of the Internal Revenue Code, would eliminate the deductibility of interest on this debt. We strongly disagree with the IRS position and will pursue all available administrative and judicial remedies. No payment of any amount related to the proposed adjustments is required to be made, if at all, until all applicable proceedings have been completed.

Following receipt of the draft NOPA, Perrigo provided the IRS with a detailed written response on September 20, 2019. That submission included an analysis by external advisors that supported the original interest rates as being consistent with arms’-length rates for comparable debt and explained why the exam team’s analyses and conclusions were both factually and legally misguided. Based on discussions with the IRS, we had believed that the IRS staff would take our submission into account and meet with us to discuss whether this issue could be resolved at the examination level. However, in the weeks following such discussions, IRS staff advised that they would not respond in detail to our September submission or negotiate the interest rate issue prior to issuing a final NOPA consistent with the draft NOPA. Accordingly, we currently expect that we will receive a final NOPA regarding this matter that proposes substantially the same adjustments described in the draft NOPA.

IRS Audit of Fiscal Years ended June 27, 2009, June 26, 2010, June 25, 2011, and June 30, 2012    

On August 15, 2017, we filed a complaint in the United States District Court for the Western District of Michigan to recover $163.6 million of Federal income tax, penalties, and interest assessed and collected by the IRS, plus statutory interest thereon from the dates of payment, for the fiscal tax years ended June 27, 2009, June 26, 2010, June 25, 2011, and June 30, 2012 (the “2009 tax year,” “2010 tax year,” “2011 tax year,” and “2012 tax year,” respectively). In response to our complaint, the United States District Court for Western District of Michigan scheduled a trial date for late May 2020 which has been delayed due to the ongoing COVID-19 pandemic. The IRS audits of those years culminated in the issuances of two statutory notices of deficiency: (1) on August 27, 2014 for the 2009 and 2010 tax years and (2) on April 20, 2017 for the 2011 and 2012 tax years. The statutory notices of deficiency both included un-agreed income adjustments related principally to transfer pricing adjustments regarding the purchase, distribution, and sale of store-brand OTC pharmaceutical products in the United States. In addition, the statutory notice of deficiency for the 2011 and 2012 tax years included the capitalization of certain expenses that

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Note 13

were deducted when paid or incurred in defending against certain patent infringement lawsuits. We fully paid the assessed amounts of tax, interest, and penalties set forth in the statutory notices and filed timely claims for refund on June 11, 2015 and June 7, 2017 for the 2009-2010 tax years and 2011-2012 tax years, respectively. Upon the disallowance of such refund claims, we timely filed the above complaint, which seeks refunds of tax, interest, and penalties of $37.2 million for the 2009 tax year, $61.5 million for the 2010 tax year, $40.2 million for the 2011 tax year, and $24.7 million for the 2012 tax year, for a total of $163.6 million. The amounts sought in the complaint for the 2009 and 2010 tax years were recorded as deferred charges in Other non-current assets on our balance sheet during the three months ended March 28, 2015, and the amounts sought in the complaint for the 2011 and 2012 tax years were recorded as deferred charges in Other non-current assets on our balance sheet during the three months ended July 1, 2017. The total cumulative deferred charge that the company is seeking to receive in this litigation is approximately $101.8 million, which reflects (i) a deduction of $29.7 million from the total reflected above due to overpayments credited to succeeding years and (ii) the impact of a previously conceded royalty due to Perrigo U.S. on all omeprazole sales that equates to 24.0% of the above refund claims. That 24.0% concession would also apply to any omeprazole adjustments that may be asserted by the IRS for future years.

IRS Audit of Fiscal Years Ended December 31, 2011, December 31, 2012, and December 31, 2013    

On April 26, 2019, we received a revised NOPA from the IRS regarding transfer pricing positions related to the IRS audit of Athena for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. The NOPA carries forward the IRS's theory from its 2017 draft NOPA that when Elan took over the future funding of Athena's in-process research and development after acquiring Athena in 1996, Elan should have paid a substantially higher royalty rate for the right to exploit Athena’s intellectual property, rather than rates based on transfer pricing documentation prepared by Elan's external tax advisors. The NOPA proposes a payment of $843.0 million, which represents additional tax and a 40.0% penalty. This amount excludes consideration of offsetting tax attributes and potentially material interest. We strongly disagree with the IRS position and will pursue all available administrative and judicial remedies, including those available under the U.S. - Ireland Income Tax Treaty to alleviate double taxation. Accordingly, on April 14, 2020, we filed a request for Competent Authority Assistance with the IRS. No payment of the additional amounts is required until the matter is resolved administratively, judicially, or through treaty negotiation.

On December 22, 2016, we received a NOPA from the IRS regarding the deductibility of litigation costs related to the IRS audit of Athena for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. We strongly disagree with the IRS’s position asserted in the NOPA and are contesting it.

Irish Revenue Audit of Fiscal Years Ended December 31, 2012 and December 31, 2013

On October 30, 2018, we received an audit finding letter from the Irish Office of the Revenue Commissioners (“Irish Revenue”) for the years ended December 31, 2012 and December 31, 2013. The audit finding letter relates to the tax treatment of the 2013 sale of the Tysabri^® intellectual property and other assets related to Tysabri^® to Biogen Idec from Elan Pharma. The consideration paid by Biogen to Elan Pharma took the form of an upfront payment and future contingent royalty payments. Irish Revenue issued a Notice of Amended Assessment (“NoA”) on November 29, 2018 which assesses an Irish corporation tax liability against Elan Pharma in the amount of €1,636 million, not including interest or any applicable penalties.

We strongly disagree with this assessment and believe that the NoA is without merit and incorrect as a matter of law. We filed an appeal of the NoA on December 27, 2018 and will pursue all available administrative and judicial avenues as may be necessary or appropriate. In connection with that, Elan Pharma was granted leave by the Irish High Court on February 25, 2019 to seek judicial review of the issuance of the NoA by Irish Revenue. The judicial review filing is based on our belief that Elan Pharma's legitimate expectations as a taxpayer have been breached, not on the merits of the NoA itself. The High Court scheduled a hearing in this judicial review proceeding for April 2020 which has been delayed due to the ongoing COVID-19 pandemic. If we are ultimately successful in the judicial review proceedings, the NoA will be invalidated and Irish Revenue will not be able to re-issue the NoA. The proceedings before the Tax Appeals Commission have been stayed until a decision on the judicial review application has been made. If for any reason the judicial review proceedings are ultimately unsuccessful in establishing that Irish Revenue's issuance of the NoA breaches our legitimate expectations, Elan Pharma will reactivate its appeal to challenge the merits of the NoA before the Tax Appeals Commission.

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Note 13

The Israel Tax Authority is auditing our fiscal year ended June 27, 2015, and calendar years ended December 31, 2015, December 31, 2016 and December 31, 2017.

Although we believe that our tax estimates are reasonable and that we prepare our tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audit and any related litigation could be materially different from our estimates or from our historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments.

Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statute of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions - one or more of which may occur within the next twelve months - it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those recorded as of March 28, 2020. However, we are not able to estimate a reasonably possible range of how these events may impact our unrecognized tax benefits in the next twelve months.

NOTE 14 – CONTINGENCIES

In view of the inherent difficulties of predicting the outcome of various types of legal proceedings, we cannot determine the ultimate resolution of the matters described below. We establish reserves for litigation and regulatory matters when losses associated with the claims become probable and the amounts can be reasonably estimated. The actual costs of resolving legal matters may be substantially higher or lower than the amounts reserved for those matters. For matters where the likelihood or extent of a loss is not probable or cannot be reasonably estimated as of March 28, 2020, we have not recorded a loss reserve. If certain of these matters are determined against us, there could be a material adverse effect on our financial condition, results of operations, or cash flows. We currently believe we have valid defenses to the claims in these lawsuits and intend to defend these lawsuits vigorously regardless of whether or not we have a loss reserve. Other than what is disclosed below, we do not expect the outcome of the litigation matters to which we are currently subject to, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations, or cash flows. 

Price-Fixing Lawsuits

We are a defendant in several cases in the generic pricing multidistrict litigation MDL No. 2724 (United States District Court for Eastern District of Pennsylvania). This multidistrict litigation, which has many cases that do not include Perrigo, includes class action and opt-out cases for federal and state antitrust claims.

We have been named as a co-defendant with certain other generic pharmaceutical manufacturers in a number of class actions alleging single-product conspiracies to fix or raise the prices of certain drugs and/or allocate customers starting, in some instances, as early as June 2013. The class actions were filed on behalf of putative classes of (a) direct purchasers, (b) end payors, and (c) indirect resellers. The products in question are Clobetasol gel, Desonide, and Econazole. Pursuant to the court’s schedule staging various cases in phases, we moved to dismiss the complaints relating to Clobetasol and Econazole. The court issued a decision denying the motions in part in October 2018 and issued a second decision in February 2019 dismissing various state law claims, but allowing other state law claims to proceed. We filed answers to the Clobetasol gel complaints on December 31, 2018. We filed answers to the Desonide and Econazole complaints on March 15, 2019. The cases are proceeding in document discovery.

The same three putative classes have each filed complaints naming us as a co-defendant, along with 27 other manufacturers, alleging an overarching conspiracy to fix or raise the prices of 15 generic prescription pharmaceutical products starting in 2011. Perrigo manufactures only two of the products at issue, Nystatin cream and Nystatin ointment. Motions to dismiss certain single-product and overarching complaints listed above were filed on February 21, 2019. Plaintiffs’ oppositions were due on May 2, 2019 and defendants’ replies were filed on June 13, 2019. On August 15, 2019, the Court denied the Defendants’ joint motions to dismiss certain overarching conspiracy allegations. The cases are proceeding in document discovery.

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In December 2019, both the end payor and indirect reseller class plaintiffs filed new overarching complaints against us, dozens of other manufacturers of generic prescription pharmaceuticals, and certain individuals. The Direct Purchaser plaintiffs filed a new overarching conspiracy complaint in February 2020. The complaints also allege conspiracies relating to the sale of various new products, the majority of which Perrigo neither makes nor sells. The indirect reseller complaint alleges that Perrigo conspired in connection with its sales of Immiquimod cream, Desonide cream and ointment, and Hydrocortisone Valerate cream. The end payor and direct purchaser

complaints allege that Perrigo conspired in connection with its sale of the following drugs: Betamethasone Dipropionate, Bromocriptine Mesylate, Clindamycin Phosphate, Fenofibrate, Halobetasol Proprionate, Hydrocortisone Valerate, Permethrin, and Triamcinolone Acetonide. Perrigo has not yet responded to the complaints, and responses are currently stayed.

On March 11, 2020, the indirect reseller plaintiffs filed a motion to amend the December 2019 complaint. The proposed amended complaint adds additional products and allegations to the original complaint. Perrigo is discussed in connection with allegations concerning an additional drug, Betamethasone Dipropionate lotion. On April 24, 2020, defendants entered into a joint stipulation with the indirect reseller plaintiffs not to oppose the motion to amend and to stay responses to the amended complaint. The stipulation and proposed order is pending Court approval.

We have also been named a co-defendant along with 35 other manufacturers in a complaint filed by three supermarket chains alleging that defendants conspired to fix prices of 31 generic prescription pharmaceutical products starting in 2013. The only allegations specific to us relate to Clobetasol, Desonide, Econazole, Nystatin cream, and Nystatin ointment. Perrigo moved to dismiss this complaint on February 21, 2019. The motion was denied on August 15, 2019. The case is proceeding in document discovery. On February 3, 2020, the plaintiffs requested leave to file a second amended complaint. The proposed amended complaint adds dozens of additional products and allegations to the original complaint. Perrigo is discussed in connection with allegations concerning an additional drug, Fenofibrate. Defendants opposed the motion for leave to file a second amended complaint and a sur-reply in support of defendants’ opposition is due to be filed on March 30, 2020.

On August 3, 2018, a large managed care organization filed a complaint against us alleging price-fixing and customer allocation concerning 17 different products among 27 manufacturers including Perrigo. The only allegations specific to us concern Clobetasol. Perrigo moved to dismiss this complaint on February 21, 2019. The motion was denied on August 15, 2019. The case is proceeding in document discovery.

On January 16, 2019, a similar suit was brought by a health insurance carrier in the U.S. District Court for the District of Minnesota alleging a conspiracy to fix prices of 30 products among 30 defendants. The only allegations specific to us concern Clobetasol gel, Desonide, Econazole, Nystatin cream, and Nystatin ointment. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On July 18, 2019, 87 health plans filed a Praecipe to Issue Writ of Summons in Pennsylvania state court to commence an action against 53 generic pharmaceutical manufacturers and 17 individuals, alleging antitrust violations concerning generic pharmaceutical drugs. While Perrigo was named as a defendant, no complaint has been filed. Proceedings in the case, including the filing of a complaint, have been stayed at the request of the plaintiffs.

On December 11, 2019, a health care service company filed a complaint against us and 38 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other multi-district litigation ("MDL") complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin cream/ointment. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On December 16, 2019, a Medicare Advantage claims recovery company filed a complaint against us and 39 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin cream/ointment. The complaint was originally filed in the District of Connecticut but will be consolidated

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into the MDL. Perrigo has not yet had the opportunity to respond to the complaint, and responses are currently stayed.

On December 23, 2019, several counties in New York filed an amended complaint against us and 28 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, and Econazole. The complaint was originally filed in New York State court but was removed to federal court and will likely be consolidated into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On December 27, 2019, a healthcare management organization filed a complaint against us and 25 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, and Econazole. The complaint was filed originally in the Northern District of California but will be consolidated into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On March 1, 2020, Harris County of Texas, filed a complaint against Perrigo New York, Inc. and 29 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, and Econazole. The complaint was originally filed in New York State court but will be transferred to the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed.

At this stage, we cannot reasonably predict the outcome of the liability if any, associated with the claims listed above.

Securities Litigation

In the United States (cases related to events in 2015-2017)

On May 18, 2016, a shareholder filed a securities case against us and our former CEO, Joseph Papa, in the U.S. District Court for the District of New Jersey (Roofers’ Pension Fund v. Papa, et al.). The plaintiff purported to represent a class of shareholders for the period from April 21, 2015 through May 11, 2016, inclusive. The original complaint alleged violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against both defendants and 20(a) control person liability against Mr. Papa. In general, the allegations concerned the actions taken by us and the former executive to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015. The plaintiff also alleged that the defendants provided inadequate disclosure concerning alleged integration problems related to the Omega acquisition in the period from April 21, 2015 through May 11, 2016. On July 19, 2016, a different shareholder filed a securities class action against us and our former CEO, Joseph Papa, also in the District of New Jersey (Wilson v. Papa, et al.). The plaintiff purported to represent a class of persons who sold put options on our shares between April 21, 2015 and May 11, 2016. In general, the allegations and the claims were the same as those made in the original complaint filed in the Roofers' Pension Fund case described above. On December 8, 2016, the court consolidated the Roofers' Pension Fund case and the Wilson case under the Roofers' Pension Fund case number. In February 2017, the court selected the lead plaintiffs for the consolidated case and the lead counsel to the putative class. In March 2017, the court entered a scheduling order.

On June 21, 2017, the court-appointed lead plaintiffs filed an amended complaint that superseded the original complaints in the Roofers’ Pension Fund case and the Wilson case. In the amended complaint, the lead plaintiffs seek to represent three classes of shareholders - shareholders who purchased shares during the period April 21, 2015 through May 3, 2017 on the U.S. exchanges; shareholders who purchased shares during the same period on the Tel Aviv exchange; and shareholders who owned shares on November 12, 2015 and held such stock through at least 8:00 a.m. on November 13, 2015 (the final day of the Mylan tender offer) regardless of whether the shareholders tendered their shares. The amended complaint names as defendants us and 11 current or former directors and officers of Perrigo (Mses. Judy Brown, Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, and Messrs. Joe Papa, Marc Coucke, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, and Donal O’Connor). The

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amended complaint alleges violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against all defendants and 20(a) control person liability against the 11 individuals. In general, the allegations concern the actions taken by us and the former executives to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015 and the allegedly inadequate disclosure throughout the entire class period related to purported integration problems related to the Omega acquisition, alleges incorrect reporting of organic growth at the Company and at Omega, alleges price fixing activities with respect to six generic prescription pharmaceuticals, and alleges improper accounting for the Tysabri^® royalty stream. The amended complaint does not include an estimate of damages. During 2017, the defendants filed motions to dismiss, which the plaintiffs opposed. On July 27, 2018, the court issued an opinion and order granting the defendants’ motions to dismiss in part and denying the motions to dismiss in part. The court dismissed without prejudice defendants Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, Donal O’Connor, and Marc Coucke. The court also dismissed without prejudice claims arising from the Tysabri^® accounting issue described above and claims alleging incorrect disclosure of organic growth described above. The defendants who were not dismissed are Perrigo Company plc, Joe Papa, and Judy Brown. The claims (described above) that were not dismissed relate to the integration issues regarding the Omega acquisition, the defense against the Mylan tender offer, and the alleged price fixing activities with respect to six generic prescription pharmaceuticals. The defendants who remain in the case (the Company, Mr. Papa, and Ms. Brown) have filed answers denying liability, and the discovery stage of litigation has begun. We intend to defend the lawsuit vigorously.

On November 14, 2019, the court granted the lead plaintiffs’ motion and certified three classes for the case: (i) all those who purchased shares between April 21, 2015 through May 2, 2017 inclusive on a U.S. exchange and were damaged thereby; (ii) all those who purchased shares between April 21, 2015 through May 2, 2017 inclusive on the Tel Aviv exchange and were damaged thereby; and (iii) all those who owned shares as of November 12, 2015 and held such stock through at least 8:00 a.m. on November 13, 2015 (whether or not a person tendered shares in response to the Mylan tender offer)(the "tender offer class"). Defendants filed a petition for leave to appeal in the Third Circuit challenging the certification of the tender offer class, and the class plaintiffs have filed an opposition. On April 30, 2020, the Third Circuit denied leave to appeal.

On November 1, 2017, Carmignac Gestion, S.A., filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled Carmignac Gestion, S.A. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), 14(e), and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through April 2016. Plaintiff contends that the defendants provided inadequate disclosure throughout the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, our reporting about the generic prescription pharmaceutical business and its prospects, and the activities surrounding the efforts to defeat the Mylan tender offer during 2015. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers’ Pension Fund case described above. The plaintiff does not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above) the parties to this case conferred about how this case should proceed. Because this plaintiff made some factual allegations that were not asserted in the Roofers’ Pension Fund case, the parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The case is now in the discovery phase. We intend to defend the lawsuit vigorously.

On January 16, 2018, Manning & Napier Advisors, LLC filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled Manning & Napier Advisors, LLC v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5) and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with

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respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff did not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above) the parties to this case conferred about how this case should proceed. Because this plaintiff made some factual allegations that were not asserted in the Roofers’ Pension Fund case, the parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. On January 3, 2020, the plaintiff filed a consented notice of voluntary dismissal dismissing its section 18 claims with prejudice and dismissing its 10(b) and 20(a) claims without prejudice. The Court approved the dismissal on January 7, 2020, and this case has now ended.

On January 26, 2018, two different plaintiff groups (the Mason Capital group and the Pentwater group) each filed a lawsuit against us and the same individuals who are defendants in the amended complaint in the securities class action case described above (Roofers’ Pension Fund case). The same law firm represents these two plaintiff groups, and the two complaints are substantially similar. These two cases are not securities class actions. One case is styled Mason Capital L.P., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The other case is styled Pentwater Equity Opportunities Master Fund Ltd., et al.  v. Perrigo Company plc, et al., and also was filed in the U.S. District Court for the District of New Jersey. Both cases are assigned to the same federal judge that is hearing the class action case and the other individual cases described above (Carmignac). Each complaint asserts claims under Securities Exchange Act sections 14(e) (related to tender offer disclosures) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs' allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in these two cases overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the allegations in the Carmignac case described above. The plaintiffs do not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to these cases conferred about how these cases should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in these cases. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the cases has begun. We intend to defend the lawsuits vigorously.

On February 13, 2018, a group of plaintiff investors affiliated with Harel Insurance Investments & Financial Services, Ltd. filed a lawsuit against us and the same individuals who are defendants in the amended complaint in the securities class action case described above (Roofers’ Pension Fund case). This lawsuit is not a securities class action. The new complaint is substantially similar to the amended complaint in the Roofers' Pension Fund case. The relevant period in the new complaint stretches from February 2014 to May 2, 2017. The complaint adds as defendants two individuals who served on our Board prior to 2016. The case is styled Harel Insurance Company, Ltd., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey and is assigned to the same federal judge that is hearing the class action cases and the three other individual cases described above (Carmignac, Mason Capital, and Pentwater). The Harel Insurance Company complaint asserts claims under Securities Exchange Act section 10(b) (and related SEC Rule 10b‑5) and section 14(e) (related to tender offer disclosures) against all defendants as well as 20(a) control person liability against the individual defendants. The complaint also asserts claims based on Israeli securities laws. In general, the plaintiffs' allegations describe events during the period from February 2014 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer events in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset from February 2014 until the withdrawal of past financial statements in April 2017. Many of the factual allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the allegations in the four opt out cases also described above. The plaintiffs do not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should

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proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the litigation has begun. We intend to defend the lawsuit vigorously.

On February 16, 2018, First Manhattan Company filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled First Manhattan Co. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the four other opt out cases. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), 14(e), and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. This lawsuit was filed by the same law firm that filed the Carmignac case described above and generally makes the same factual assertions as in the Carmignac case. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. On April 20, 2018, the plaintiff filed an amended complaint that did not materially change the factual allegations of the original complaint. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. Because this plaintiff made some factual allegations that were not asserted in the Roofers’ Pension Fund case, the parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The case is now in the discovery phase. We intend to defend the lawsuit vigorously.

On April 20, 2018, a group of plaintiff investors affiliated with TIAA-CREF filed a lawsuit against us and the same individuals who are the defendants in the Harel Insurance case complaint. This lawsuit is not a securities class action. The law firm representing the plaintiffs in the Harel Insurance case also represents the TIAA-CREF plaintiff entities in this case, and the new complaint is substantially similar to the Harel Insurance complaint. The relevant period in the new complaint is August 14, 2014 to May 2, 2017 inclusive. The case is styled TIAA-CREF Investment Management, LLC., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey and is assigned to the same federal judge that is hearing the class action case and the six other individual cases described above (Carmignac, Mason Capital, Pentwater, Harel Insurance, and First Manhattan). The TIAA-CREF Investment Management complaint asserts claims under Securities Exchange Act section 10(b) (and related SEC Rule l0b-5), section 14(e) (related to tender offer disclosures) against all defendants as well as section 20(a) control person liability against the individual defendants. In general, plaintiffs' allegations describe events during the period from August 2014 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer events in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset from August 2014 until the withdrawal of past financial statements in April 2017. Many of the factual allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above) the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the litigation has begun. We intend to defend the lawsuit vigorously.

On October 29, 2018, Nationwide Mutual Funds and Nationwide Variable Insurance Trust (both on behalf of several fund series) filed a securities lawsuit against us and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Nationwide Mutual Funds, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the six other opt out cases.

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The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), and 14(e) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs' allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the First Manhattan case and the Carmignac case described above and generally makes the same factual assertions as in the First Manhattan case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. The defendants (the Company, Mr. Papa, and Ms. Brown) filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The case is now in the discovery phase. We intend to defend the lawsuit vigorously.

On November 15, 2018, a group of plaintiff investors affiliated with Westchester Capital Funds filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P. case and the Pentwater Equity Opportunities Master Fund Ltd. case (described above) represents the affiliates of the Westchester Funds in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations of the complaints in the Mason Capital and in the Pentwater cases described above. The case is styled WCM Alternative: Event-Drive Fund, et al. v. Perrigo Co., plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The WCM case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the seven other individual cases described above. The complaint asserts claims under Securities Exchange Act sections 10(b) (and SEC Rule 10b‑5) and 14(e) against all defendants as well as 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 as well us up through May 3, 2017. Plaintiffs identify disclosures concerning the valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers’ Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the cases has begun. We intend to defend the lawsuit vigorously.

On November 15, 2018, a group of plaintiff investors affiliated with Hudson Bay Capital Management LP filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equity Opportunities Master Fund Ltd., and the WCM cases (described above) represents the affiliates of Hudson Bay Capital Management in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations of the complaints in the Mason Capital, in the Pentwater, and in the WCM cases described above. The case is styled Hudson Bay Master Fund Ltd., et al. v. Perrigo Co., plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Hudson Bay Fund case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the eight other individual cases described above. The complaint asserts claims under Securities Exchange Act section 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers’ Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties

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to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the cases has begun. We intend to defend the lawsuit vigorously.

On January 31, 2019, Schwab Capital Trust and a variety of other Schwab entities filed a securities lawsuit against us and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Schwab Capital Trust, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the nine other opt out cases. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5), and 14(e) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, and the Nationwide Mutual Funds case described above and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. The parties agreed that the defendants would not respond to the complaint until 45 days after the court decided the motion to dismiss then-pending in the Carmignac, First Manhattan, and Nationwide Mutual cases described above. On July 31, 2019, the court granted in part and denied in part that motion to dismiss. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. This case has now also moved into the discovery phase. We intend to defend the lawsuit vigorously.

On February 6, 2019, OZ Master Fund, Ltd. and a related entity filed a securities lawsuit against us and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled OZ Master Fund, Ltd., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. Recently the names of the plaintiff entities were changed, and the case is now styled Sculptor Master Fund, et al. v. Perrigo Company plc, et al. The case was assigned to the same judge hearing the class action case and the ten other opt out cases described above. The complaint asserts claims under Securities Exchange Act sections 10(b) (and SEC Rule 10b‑5), and 14(e) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. The parties agreed that the court's rulings in July 2018 in the Roofers' Pension Fund case (discussed above) and in July 2019 in the Carmignac and other cases (discussed above) will apply to this case as well. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The parties agreed to a proposed schedule, which the court approved in July 2019, by which the plaintiffs are participating in the discovery proceedings in the Roofers' Pension Fund case described above and the various individual cases also described above. We intend to defend the lawsuit vigorously.

On February 14, 2019, Highfields Capital I LP and related entities filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Highfields Capital I LP, et al. v. Perrigo Company plc, et al., and was initially filed in the U.S. District Court for the District of Massachusetts. The complaint asserts claims under Securities Exchange Act sections 14(e) and 18 against all defendants, as well as 20(a) control person liability against the individual defendants. The complaint also asserts Massachusetts state law claims under Massachusetts Unfair Business Methods Law (chapter 93A § 11), and Massachusetts common law claims of tortious interference with prospective economic advantage, common law fraud, negligent misrepresentation, and unjust enrichment. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the

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period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged improper accounting for the Tysabri^® asset. Some of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and with allegations in one or more of the opt out cases described above. Plaintiffs do not provide a clear calculation of how they estimated damages and seek treble damages, punitive damages, and attorney's fees. In March 2020, the District of Massachusetts court granted defendants’ motion and transferred this case to the U.S. District Court for the District of New Jersey so that the activities in this case can proceed in tandem with the eleven other cases in the District of New Jersey listed above. After the transfer, the plaintiffs agreed to dismiss their Massachusetts state law claims and proceed on their federal law claims. Plaintiffs will participate in the discovery activities of the other cases described above. Meanwhile, the defendants will move to dismiss certain factual allegations that plaintiffs were unwilling to dismiss. We intend to defend the lawsuit vigorously.

On February 22, 2019, Aberdeen Canada Funds -- Global Equity Funds (and 30 other entities, some unrelated to Aberdeen) filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Aberdeen Canada Funds -- Global Equity Fund, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the twelve other opt-out cases pending in that court. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5) against all defendants and 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged undisclosed pricing pressure for generic prescription pharmaceuticals, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, the Nationwide Mutual Funds case, and the Schwab Capital Trust case described above, and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. On July 31, 2019, the court granted in part and denied in part the motion to dismiss in the Carmignac and related cases, which ruling also applies to this case. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. This case has now moved into the discovery phase. We intend to defend the lawsuit vigorously.

On December 18, 2019, Discovery Global Citizens Master Fund, Ltd., and three other funds from the same group of companies filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, and the Hudson Bay Master Fund, Ltd. cases represents the plaintiffs in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those four earlier cases. The case is styled Discovery Global Citizens Master Fund, Ltd., et al. v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Discovery Global case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the thirteen other individual cases described above. The complaint asserts claims under Securities Exchange Act section § 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the case has begun. We intend to defend this case vigorously.

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On December 20, 2019, York Capital Management, L.P. and six other related funds from the same group of companies filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, the Hudson Bay Master Fund, Ltd., and the Discovery Global cases represents the plaintiffs in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those four earlier cases. The case is styled York Capital Management, L.P., et al. v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The York Capital case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the fourteen other individual cases in described above. The complaint asserts claims under Securities Exchange Act section § 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the cases has begun. We intend to defend this case vigorously.

On February 12, 2020, Burlington Loan Management DAC filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, the Hudson Bay Master Fund, Ltd., the Discovery Global, and the York Capital cases represents the plaintiff in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those six earlier cases. The case is styled Burlington Loan Management DAC v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Burlington Loan case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the fifteen other individual cases in described above. The complaint asserts claims under Securities Exchange Act section 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiff’s allegations describe events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the cases has begun. We intend to defend this case vigorously.

On March 2, 2020, Universities Superannuation Scheme Limited filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, the Hudson Bay Master Fund, Ltd., the Discovery Global, and the York Capital cases represents the plaintiff in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those six earlier cases. The case is styled Universities Superannuation Scheme Limited v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Universities Superannuation case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the sixteen other individual cases described above. The complaint asserts claims under Securities Exchange Act sections 10(b) and 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiff’s allegations describe events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure during the tender offer period in 2015 as well as at other times in 2016 and point to disclosures at various times during these periods concerning the valuation and

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integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the case has begun. We intend to defend the lawsuit vigorously.

On March 5, 2020, Principal Funds, Inc. (and other related entities) filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Principal Funds, Inc., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the Roofers' Pension Fund class action case and the seventeen other opt-out cases pending in that court. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5) against all defendants and 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged undisclosed pricing pressure for generic prescription pharmaceuticals, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, the Nationwide Mutual Funds case, the Schwab Capital Trust case, and the Aberdeen Funds case described above, and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. On July 31, 2019, the court granted in part and denied in part the motion to dismiss in the Carmignac and related cases, which ruling also applies to this case. The defendants (the Company, Mr. Papa, and Ms. Brown) are filing answers denying liability. This case has now moved into the discovery phase. We intend to defend the lawsuit vigorously.

On March 31, 2020, Kuwait Investment Authority (and another related entity) filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Kuwait Investment Authority, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the Roofers' Pension Fund class action case and the eighteen other opt-out cases pending in that court. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5) against all defendants and 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged undisclosed pricing pressure for generic prescription pharmaceuticals, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, the Nationwide Mutual Funds case, the Schwab Capital Trust case, the Aberdeen Funds case, and the Principal Funds case described above, and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. The parties are negotiating a schedule concerning the defendants’ answers. It is anticipated that the plaintiffs will participate in the discovery activities related to all the securities cases listed above. We intend to defend the lawsuit vigorously.

On April 21, 2020, BlackRock Global Allocation Fund and multiple affiliated entities filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The factual allegations of the complaint are substantially similar to the factual allegations in many of the cases described above. The case is styled BlackRock Global Allocation Fund, et al. v. Perrigo Co. plc, et al., and

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Perrigo Company plc - Item 1

Note 14

is filed in the U.S. District Court for the District of New Jersey. The BlackRock Global case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the nineteen other individual cases described above. The complaint asserts claims under Securities Exchange Act section 10(b) (and SEC Rule 10b-5) and section 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, alleged lower performance in the generic prescription drug business during 2015 and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the opt out cases described above. The plaintiffs do not provide an estimate of damages. The parties have just begun discussions about the schedule for how this case should proceed.  We intend to defend this case vigorously.

In Israel (cases related to events in 2015-2017)

Because our shares are traded on the Tel Aviv exchange under a dual trading arrangement, we are potentially subject to securities litigation in Israel. Three cases were filed; one was voluntarily dismissed in each of 2017 and 2018 and one was stayed in 2018. We are consulting Israeli counsel about our response to these allegations and we intend to defend this case vigorously.

On June 28, 2017, a plaintiff filed a complaint in Tel Aviv District Court styled Israel Elec. Corp. Employees’ Educ. Fund v. Perrigo Company plc, et al. The lead plaintiff seeks to represent a class of shareholders who purchased Perrigo stock on the Tel Aviv exchange during the period April 24, 2015 through May 3, 2017 and also a claim for those that owned shares on the final day of the Mylan tender offer (November 13, 2015). The amended complaint names as defendants the Company, Ernst & Young LLP (the Company’s auditor), and 11 current or former directors and officers of Perrigo (Mses. Judy Brown, Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, and Messrs. Joe Papa, Marc Coucke, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, and Donal O’Connor). The complaint alleges violations under U.S. securities laws of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against all defendants and 20(a) control person liability against the 11 individuals or, in the alternative, under Israeli securities laws. In general, the allegations concern the actions taken by us and our former executives to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015 and the allegedly inadequate disclosure concerning purported integration problems related to the Omega acquisition, alleges incorrect reporting of organic growth at the Company, alleges price fixing activities with respect to six generic prescription pharmaceuticals, and alleges improper accounting for the Tysabri^® royalty stream. The plaintiff indicates an initial, preliminary class damages estimate of 2.7 billion NIS (approximately $760.0 million at 1 NIS = 0.28 cents). After the other two cases filed in Israel were voluntarily dismissed, the plaintiff in this case agreed to stay this case pending the outcome of the Roofers’ Pension Fund case in the U.S. (described above). The Israeli court approved the stay, and this case is now stayed. We intend to defend the lawsuit vigorously.

In the United States (cases related to Irish Tax events)

On January 3, 2019, a shareholder filed a complaint against the Company, our CEO Murray Kessler, and our former CFO Ronald Winowiecki in the U.S. District Court for the Southern District of New York (Masih v. Perrigo Company, et al.). Plaintiff purports to represent a class of shareholders for the period November 8, 2018 through December 20, 2018, inclusive. The complaint alleges violations of Securities Exchange Act section 10(b) (and Rule 10b‑5) against all defendants and section 20(a) control person liability against the individual defendants. In general the allegations contend that the Company, in its Form 10‑Q filed November 8, 2018, disclosed information about an October 31, 2018 audit finding letter received from Irish tax authorities but failed to disclose enough material information about that letter until December 20, 2018, when we filed a current report on Form 8‑K about Irish tax matters. The plaintiff does not provide an estimate of class damages. The Court selected lead plaintiffs and changed the name of the case to In re Perrigo Company plc Sec. Litig. The lead plaintiffs filed an amended complaint on April 12, 2019, which named the same defendants, asserted the same class period, and invoked the same Exchange Act sections. The amended complaint generally repeated the allegations of the original complaint with a few additional details and adds that the defendants also failed to timely disclose the Irish tax authorities’ Notice of Amended Assessment received on November 29, 2018. Defendants filed a motion to dismiss on May 3, 2019. On May 31, 2019, the plaintiffs filed a second amended complaint, which asserted a longer class period

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Perrigo Company plc - Item 1

Note 14

(March 1, 2018 through December 20, 2018) and added one additional individual defendant, former CEO Uwe Roehrhoff. In general, the second amended complaint contends that Perrigo’s disclosures about the Irish tax audit were inadequate beginning with Perrigo’s 10-K filed on March 1, 2018 through December 20, 2018 and repeats many of the allegations of the April 2019 amended complaint. The second amended complaint alleges violations of Securities Exchange Act section 10(b) (and SEC Rule 10b-5) against all defendants and section 20(a) control person liability against the three individual defendants. All defendants filed a joint motion to dismiss. On January 23, 2020, the court granted the motion to dismiss in part and denied it in part, dismissing Mr. Roehrhoff as a defendant and dismissing allegations of inadequate disclosures related to the audit by Irish Revenue during the period March 2018 through October 30, 2018. The court permitted the plaintiffs to pursue their claims against us, Mr. Kessler, and Mr. Winowiecki related to disclosures after Perrigo received the October 30, 2018 audit findings letter and later events through December 20, 2018. The Defendants filed answers on February 13, 2020 denying liability, and the Court held a scheduling conference on February 28, 2020, and issued a scheduling order on March 3, 2020. Discovery on the remaining issues is underway. We intend to defend the lawsuit vigorously.

In Israel (cases related to Irish Tax events)

On December 31, 2018, a shareholder filed an action against the Company, our CEO Murray Kessler, and our former CFO Ronald Winowiecki in Tel Aviv District Court (Baton v. Perrigo Company plc, et. al.). The case is a securities class action brought in Israel making similar factual allegations for the same period as those asserted in the In re Perrigo Company plc Sec. Litig case in New York federal court. This case alleges that persons who invested through the Tel Aviv stock exchange can assert claims under Israeli securities law that will follow the liability principles of Sections 10(b) and 20(a) of the U.S. Securities Exchange Act. The plaintiff does not provide an estimate of class damages. In 2019, the court granted two requests by Perrigo to stay the proceedings pending the resolution of proceedings in the United States. Perrigo filed a further request for a stay in February 2020, and the court granted the stay indefinitely. We intend to defend the lawsuit vigorously.

Claim Arising from the Omega Acquisition

On December 16, 2016, we and Perrigo Ireland 2 brought an arbitral claim ("Claim") against Alychlo NV ("Alychlo") and Holdco I BE NV (together the "Sellers") in accordance with clause 26.2 of the Share Purchase Agreement dated November 6, 2014 ("SPA") and the rules of the Belgian Centre for Arbitration and Mediation ("CEPANI"). Our Claim relates to the accuracy and completeness of information about Omega provided by the Sellers as part of the sale process, the withholding of information by the Sellers during that process and breaches of Sellers’ warranties. We are seeking monetary damages from the Sellers. The Sellers served their respective responses to the Claim on February 20, 2017. In its response, Alychlo has asserted a counterclaim for monetary damages contending that we breached a warranty in the SPA and breached the duty of good faith in performing the SPA. Alychlo subsequently filed papers seeking permission to introduce an additional counterclaim theory of recovery related to the Irish tax issues disclosed by the Company such that if the position of the Irish tax authorities prevails, Alychlo would have further basis for its counterclaim against Perrigo. In June 2019, the Tribunal denied permission for Alychlo to introduce the additional counterclaim and dismissed certain aspects of the original Alychlo counterclaim. There can be no assurance that our Claim will be successful, and the Sellers deny liability for the Claim. To the extent that aspects of Alychlo’s counterclaim survived the Tribunal’s ruling in June 2019, we deny that Alychlo is entitled to any relief (including monetary relief). The arbitration proceedings are confidential as required by the SPA and the rules of the CEPANI.

Other Matters

Our Board of Directors received a shareholder demand letter dated October 30, 2018 relating to the allegations in the securities cases and price fixing lawsuits described above. The letter demands that the Board of Directors initiate an action against certain current and former executives and Board members to recover damages allegedly caused to the Company. In response, the Company reminded the shareholder that any derivative claim can only proceed in accordance with Irish law, the law that governs the Company’s internal affairs. The shareholder responded that he would file a lawsuit asserting derivative claims.

On October 2, 2019, the shareholder filed a derivative action in the U.S. District Court for the District of New Jersey styled Krueger derivatively on behalf of nominal defendant Perrigo Company plc v. Alford, et al. The case was assigned to the same judge who is handling the Roofers' Pension Fund securities class action and related opt

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Perrigo Company plc - Item 1

Note 14

out cases described above. In addition to the Company, the lawsuit names as defendants current Board members Alford, Classon, Karaboutis, Kindler, O’Connor, Parker, and Samuels, current CEO Kessler, former Board members Smith, Brlas, Cohen, Fouse, Hoffing, Jandernoa, Kunkle, and Morris, former CEO Hendrickson, former CEO Papa, former CFO Brown, former CFO Winowiecki, and former Executive Vice Presidents Boothe and Coucke. The lawsuit seeks to authorize the shareholder to pursue claims on behalf of the Company against all the individual defendants for breach of their fiduciary duties and for unjust enrichment, and against the current director defendants, former director Mr. Smith, and current CEO Mr. Kessler for violations of Exchange Act §§ 14(a) (proxy statement disclosures) and 29(b) (disgorgement as a result of alleged violations of § 14(a)). The complaint alleges that the following events indicate that the individuals in their respective capacities failed to exercise appropriate control over the management of the Company and made inadequate public disclosures concerning the integration of Omega after acquisition; the Company’s past and prospective organic growth; the defense against the Mylan 2015 tender offer; the alleged collusive pricing activities regarding generic prescription products; the accounting by the Company for the Tysabri® royalty stream; the 2018 Irish tax audit including potential liabilities for Irish taxes; and the April 2019 assertion of tax liabilities by the U.S. Internal Revenue Service (many of these factual events also underlie the securities cases discussed earlier in this Note 14). All defendants have filed motions to dismiss asserting various reasons to dismiss. Plaintiff filed his opposition in March 2020. Defendants’ replies in support of dismissal are due in late June 2020. We intend to defend the lawsuit vigorously.

Talcum Powder

The Company has been named, together with other manufacturers, in product liability lawsuits in state courts in Florida, Missouri and Illinois and in the Southern District of Mississippi alleging that the use of body powder products containing talcum powder causes mesothelioma and lung cancer due to the presence of asbestos. The Company has been named in 27 individual lawsuits seeking compensatory and punitive damages and has accepted a tender for a portion of the defense costs and liability from a retailer for one additional matter. The Company has not manufactured or sold talcum powder products since 1999. The Company has several defenses and intends to aggressively defend these lawsuits.   

Ranitidine

After regulatory bodies announced worldwide that ranitidine may potentially contain N-nitrosodimethylamine ("NDMA"), a known environmental contaminant, the Company promptly began testing its externally-sourced ranitidine API and ranitidine-based products. On October 8, 2019, the Company halted shipments of the product based upon preliminary results and on October 23, 2019, the Company made the decision to conduct a voluntary retail market withdrawal. As of April 29, 2020, the Company has been named in six product liability lawsuits in various federal courts alleging that plaintiffs developed various types of cancers or are placed at higher risk of developing cancer as a result of ingesting products containing ranitidine. The Company is named in these lawsuits with manufacturers of the national brand Zantac® and other manufacturers of ranitidine products and/or retailers. Some of the Company’s retailer customers are seeking indemnity from the Company for a portion of their defense costs and liability relating to these cases.  Plaintiffs seek compensatory and punitive damages, and in some instances seek applicable remedies under state consumer protection laws. In February 2020, federal actions involving Zantac and other ranitidine products were transferred for coordinated pretrial proceedings to a Multi-District Litigation (In re Zantac/Ranitidine Products Liability Litigation MDL No. 2924) in the U.S. District Court for the Southern District of Florida.

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Perrigo Company plc - Item 1

Note 15

NOTE 15 – RESTRUCTURING CHARGES

We periodically take action to reduce redundant expenses and improve operating efficiencies. Restructuring activity includes severance, lease exit costs, and related consulting fees. The following reflects our restructuring activity (in millions):

	Three Months Ended
	March 28, 2020			March 30, 2019
Beginning balance	$	19.6		$	24.0
Additional charges	—			5.9
Payments	(3.5		)	(9.0		)
Non-cash adjustments	(0.1		)	(0.4		)
Ending balance	$	16.0		$	20.5

There were no charges incurred during the three months ended March 28, 2020. The charges incurred during the three months ended March 30, 2019 were primarily associated with the reorganization of our executive management team.

There were no other material restructuring programs that significantly impacted any other reportable segments for the three months ended March 30, 2019. All charges are recorded in Restructuring expense on the Condensed Consolidated Statements of Operations. The remaining $16.0 million liability for employee severance benefits is expected to be paid within the next year.

NOTE 16 – SEGMENT INFORMATION

Our segments reflect the way in which our management makes operating decisions, allocates resources, and manages the growth and profitability of the Company.

The tables below show select financial measures by reporting segment (in millions):

	Total Assets
	March 28, 2020		December 31, 2019
CSCA	$	4,179.2	$	3,990.2
CSCI	4,653.1		4,682.7
RX	2,568.4		2,628.5
Total	$	11,400.7	$	11,301.4

	Three Months Ended
	March 28, 2020							March 30, 2019
	Net Sales		Operating Income (Loss)			Intangible Asset Amortization		Net Sales		Operating Income (Loss)			Intangible Asset Amortization
CSCA	$	700.6	$	124.6		$	13.6	$	581.8	$	94.2		$	10.1
CSCI	382.7		25.0			38.3		350.8		8.1			44.1
RX	257.7		51.7			21.2		241.9		60.6			21.2
Unallocated	—		(55.6		)	—		—		(60.6		)	—
Total	$	1,341.0	$	145.7		$	73.1	$	1,174.5	$	102.3		$	75.4

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Perrigo Company plc - Item 1

Note 17

NOTE 17 – SUBSEQUENT EVENTS

Acquisition of the Oral Care Assets of High Ridge Brands

On April 1, 2020, we completed the acquisition of the oral care assets of High Ridge Brands for total agreed purchase consideration of $113.0 million, subject to customary post-closing adjustments, including a working capital settlement which may raise or lower the purchase price. The consideration includes an $11.3 million deposit we paid during the three months ended March 28, 2020, which is recorded on the Condensed Consolidated Balance Sheets within Other non-current assets. This acquisition includes the leading children’s oral care value brand, Firefly^®, in addition to the REACH^® and Dr. Fresh^® brands. The U.S. operations, which represents a significant portion of the business, will be reported in our CSCA segment and the remaining non-U.S. operations will be reported in our CSCI segment.

During the three months ended March 28, 2020, in connection with the acquisition, we incurred $1.5 million of general transaction costs (legal, banking and other professional fees). The amounts were recorded in Administration expenses within the CSCA segment.

We are in the process of gathering significant relevant information needed to complete the valuation for the assets acquired and liabilities assumed. As a result, the initial accounting for the acquisition accounting is incomplete. The provisional acquisition amounts recognized for assets acquired and liabilities assumed and the supplemental pro-forma information will be included in our quarterly Report on Form 10-Q for the second quarter of 2020.

ITEM 2.        MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

EXECUTIVE OVERVIEW

This Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with the financial statements included in this Form 10-Q and our Form 10-K for the year ended December 31, 2019 (the “2019 Form 10-K”). These historical financial statements may not be indicative of our future performance. This discussion contains a number of forward-looking statements, all of which are based on our current expectations and could be affected by the uncertainties and risks referred to under “Risk Factors” in Item 1A of our 2019 Form 10-K and Part II. Item 1A of this Form 10-Q.

Perrigo Company plc was incorporated under the laws of Ireland on June 28, 2013 and became the successor registrant of Perrigo Company, a Michigan corporation, on December 18, 2013 in connection with the acquisition of Elan Corporation, plc ("Elan"). Unless the context requires otherwise, the terms "Perrigo," the "Company," "we," "our," "us," and similar pronouns used herein refer to Perrigo Company plc, its subsidiaries, and all predecessors of Perrigo Company plc and its subsidiaries.

We are dedicated to making lives better by bringing quality, affordable self-care products that consumers trust everywhere they are sold. We are a leading provider of over-the-counter ("OTC") health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. We are also a leading producer of generic prescription pharmaceutical topical products such as creams, lotions, and gels as well as nasal sprays and inhalers.

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Perrigo Company plc - Item 2

Executive Overview

Our Segments

Our reporting and operating segments are as follows:

• Consumer Self-Care Americas ("CSCA") comprises our consumer self-care business (OTC, contract manufacturing, infant formula, and oral self-care categories and our divested animal health category) in the U.S., Mexico and Canada.

• Consumer Self-Care International ("CSCI") comprises our branded consumer self-care business primarily in Europe, our consumer self-care businesses in the United Kingdom and Australia, and our liquid licensed products business in the United Kingdom.

• Prescription Pharmaceuticals ("RX") comprises our prescription pharmaceuticals business in the U.S., predominantly generics, and our pharmaceuticals and diagnostic businesses in Israel.

Our segments reflect the way in which our management makes operating decisions, allocates resources, and manages the growth and profitability of the Company. Financial information related to our business segments and geographic locations can be found in Item 1. Note 2 and Note 16. For results by segment, see "Segment Results" below.

Highlights

• We previously announced a plan to separate our RX business, which, if completed, would enable us to focus solely on our consumer-focused businesses. A separation of the RX business could include a possible sale, spin-off, merger or other form, and we have not committed to a time frame for a separation. We have incurred significant preparation costs due to the announced plan to separate, and if completed we could incur total costs in the range of $45.0 million to $80.0 million, excluding restructuring expenses and transaction costs, depending on timing and structure of a transaction.

Impact of COVID-19 Pandemic

We have been impacted by the novel coronavirus (COVID-19) global pandemic and the responses by government entities to combat the virus. We currently continue to operate in all our jurisdictions and are complying with the rules and guidelines prescribed in each jurisdiction. We are closely monitoring the impact of COVID-19 on all aspects of our business and geographies. Our first priority has been, and will continue to be, the safety of our employees who continue to come to work and are dedicated to keeping our essential products flowing into the market. We have taken extra precautions at our facilities to help ensure the health and safety of our employees that are in line with guidance from global health authorities and local authorities. Among other precautions implemented, we have restricted access to our facilities worldwide to essential employees only, implemented a multi-step pre-screening access process before an employee can enter a facility, communicated regularly with employees and provided education related to social distancing and hand washing, prioritized production to essential products, implemented remote work arrangements where appropriate, and restricted business travel. To date, these arrangements have not materially affected our ability to maintain our business operations, including the operation of financial reporting systems, internal control over financial reporting, and disclosure controls and procedures.

In March 2020, we experienced a surge in demand for certain of our essential health-care and self-care products due to consumer and customer behavior surrounding the COVID-19 pandemic. We estimate that this surge added between $90.0 million to $110.0 million in net sales on a consolidated basis in the first quarter. At this time, we cannot realistically estimate how much of March's surge in sales was consumed, how much was purchased by atypical store brand buyers, or how much was a result of consumer pantry loading. As such, it is possible that consumer demand for such products in future periods may be reduced and could depend on the duration and severity of the COVID-19 related illnesses.

Both the outbreak of the disease and the actions to slow its spread have had an adverse impact on our operations by, among other things, disrupting our manufacturing operations, affecting the supply of raw materials and third party supplied finished goods, and preventing our employees from coming to work. We have responded to such impacts by, among other things, implementing protocols to protect the health of factory workers, adjusting production schedules, and seeking alternate suppliers where available, and so far, most of our facilities have continued to produce at high levels despite these challenges. However, if the pandemic continues or intensifies, it is

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Perrigo Company plc - Item 2

Executive Overview

possible that these or other challenges may begin having a larger impact on our operations. Additionally, concerns over the economic impact of COVID-19 have caused extreme volatility in financial and other capital markets which has adversely impacted, and may continue to adversely impact our stock price and our ability to access capital markets. The situation surrounding COVID-19 remains fluid, and we are actively managing our response and assessing potential impacts to our financial condition, supply chains and other operations, employees, results of operations, consumer demand for our products, and our ability to access capital. The magnitude of any such adverse impact cannot currently be determined due to a number of uncertainties surrounding COVID-19 (refer to Item 1A. Risk Factors for related risks).

We also experienced a decrease in our effective tax rate due to additional interest and depreciation deductions provided for in the U.S. Coronavirus Aid, Relief, and Economic Security ("CARES") Act enacted on March 27, 2020 resulting in a reduction of income tax expense by approximately $20.0 million in the first quarter of 2020. Given our financial strength, we expect to be able to maintain adequate liquidity as we manage through the current environment, however as a precautionary measure, in the first quarter, we took action to provide additional liquidity and preserve financial flexibility, as described in the Financial Condition, Liquidity and Capital Resources section below.

RESULTS OF OPERATIONS

CONSOLIDATED

Consolidated Financial Results

Three Month Comparison

	Three Months Ended
(in millions)	March 28, 2020			March 30, 2019
Net sales	$	1,341.0		$	1,174.5
Gross profit	$	483.2		$	448.8
Gross profit %	36.0		%	38.2		%
Operating income (loss)	$	145.7		$	102.3
Operating income (loss) %	10.9		%	8.7		%

* Total net sales by geography is derived from the location of the entity that sells to a third party.

Three Months Ended March 28, 2020 vs. Three Months Ended March 30, 2019

Net sales increased $166.5 million, or 14%, due to:

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Perrigo Company plc - Item 2

Consolidated

• $203.0 million, or a 17%, net increase due primarily to an increase in demand for our consumer products due to increased cough and cold illnesses and allergens, and new product sales including the launch of albuterol sulfate inhalation aerosol, both of which include the positive impact from a surge in demand for certain products due to consumer and customer behavior surrounding the COVID-19 pandemic, as well as an increase of $76.3 million due to our acquisition of Ranir. These increases were partially offset by pricing pressure, primarily in our RX segment, and an $11.2 million decrease due to discontinued products; partially offset by

• $36.5 million decrease due primarily to:

◦ $13.2 million primarily from unfavorable Euro foreign currency translation; and

◦ $23.3 million due to our divested animal health business previously included in our CSCA segment and Canoderm prescription product previously included in the Nordic region of our CSCI segment.

Operating income increased $43.4 million, or 42%, due to:

• $34.4 million increase in gross profit due primarily to increased net sales as described above, partially offset by operational inefficiencies primarily in our CSCA and RX segments. Gross profit as a percentage of net sales decreased 220 basis points due primarily to pricing pressure in our RX segment, operational inefficiencies, and unfavorable product mix; and

• $9.0 million decrease in operating expenses due primarily to the absence of restructuring expenses taken in the prior year period, the absence of expenses for the divested animal health business, and a decrease in expenses related to our current cost savings initiative, partially offset by the inclusion of Ranir.

Recent Developments

Internal Revenue Service Complaint

On August 15, 2017, we filed a complaint in the United States District Court for the Western District of Michigan to recover $163.6 million of Federal income tax, penalties, and interest assessed and collected by the IRS, plus statutory interest thereon from the dates of payment, for the fiscal tax years ended June 27, 2009, June 26, 2010, June 25, 2011, and June 30, 2012. In response to our complaint, the United States District Court for Western District of Michigan scheduled a trial date for late May 2020, which has now been delayed due to the ongoing COVID-19 pandemic (refer to Item 1. Note 13).

Internal Revenue Service Notice of Proposed Adjustment

As previously disclosed, on April 26, 2019, we received a revised Notice of Proposed Adjustment ("NOPA") from the IRS regarding transfer pricing positions related to the IRS audit of Athena for the years ended December 31, 2011, December 31, 2012 and December 31, 2013. We strongly disagree with the IRS position and will pursue all available administrative and judicial remedies, including those available under the U.S. - Ireland Income Tax Treaty to alleviate double taxation. Accordingly, on April 14, 2020, we filed a request for Competent Authority Assistance with the IRS (refer to Item 1. Note 13).

Irish Tax Appeals Commission Notice of Amended Assessment

On October 30, 2018, we received an audit finding letter from the Irish Office of the Revenue Commissioners (“Irish Revenue”) for the years ended December 31, 2012 and December 31, 2013 relating to the tax treatment of the 2013 sale of the Tysabri^® intellectual property and other assets related to Tysabri^® to Biogen Idec from Elan Pharma.     We strongly disagree with this assessment and believe that the Notice of Amended Assessment ("NoA") is without merit and incorrect as a matter of law and appealed the assessment to the Tax Appeals Commission. We were also granted leave by the Irish High Court on February 25, 2019 to seek judicial review of the issuance of the NoA by Irish Revenue. The High Court had scheduled a hearing in this judicial review proceeding for April 2020, but that hearing has been delayed due to the ongoing COVID-19 pandemic (refer to Item 1. Note 13).

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Perrigo Company plc - Item 2

CSCA

CONSUMER SELF-CARE AMERICAS

Recent Trends and Developments

• Towards the end of the quarter, we experienced an increase in demand for many of our OTC and infant nutrition products attributed to consumer reaction to the outbreak of COVID-19. We are uncertain as to what extent, or if, the demand will continue in the future and what the impact may be on our future results of operations. It is possible that consumer demand for such products in future periods may be reduced and could depend on the duration and severity of the COVID-19 related illnesses.

• On April 6, 2020, we received approval from the U.S. Food and Drug Administration on our abbreviated new drug application for OTC diclofenac sodium topical gel 1%, the store brand equivalent to Voltaren^® gel. When launched, this product will be marketed under store brand labels and will provide consumers with a high-quality, value alternative for the temporary relief of arthritis pain. We expect to launch the new OTC product later this year.

• On April 1, 2020, we completed the acquisition of the oral care assets of High Ridge Brands for total agreed purchase consideration of $113.0 million, subject to customary post-closing adjustments, including a working capital settlement which may raise or lower the purchase price. The consideration includes an $11.3 million deposit we paid during the three months ended March 28, 2020, which is recorded on the Condensed Consolidated Balance Sheets within Other non-current assets. This acquisition includes the leading children’s oral care value brand, Firefly^®, in addition to the REACH^® and Dr. Fresh^® brands. The addition of these brands positions us as the number one fastest-growing value brand player in the children’s oral care category and the strong licensing portfolio will enable creative solutions for our customers (refer to Item 1. Note 17).

• On January 3, 2020, we acquired Steripod^®, a leading toothbrush accessory brand and innovator in the toothbrush protector market, from Bonfit America Inc. Total consideration paid was $26.0 million, subject to customary post-closing adjustments. The transaction was accounted for as an asset acquisition, in which we capitalized $24.9 million as a brand-named intangible asset. The remainder of the purchase price was allocated to working capital. The acquisition, which includes a portfolio of antibacterial toothbrush protectors, kids’ toothbrush protectors and tongue cleaners, complements our current portfolio of oral self-care products, and leverages our manufacturing and marketing platform (refer to Item 1. Note 3).

Segment Financial Results

Three Month Comparison

	Three Months Ended
(in millions)	March 28, 2020			March 30, 2019
Net sales	$	700.6		$	581.8
Gross profit	$	215.5		$	184.0
Gross profit %	30.8		%	31.6		%
Operating income (loss)	$	124.6		$	94.2
Operating income (loss)%	17.8		%	16.2		%

Three Months Ended March 28, 2020 vs. Three Months Ended March 30, 2019

Net sales increased $118.8 million, or 20%, due to:

• $139.4 million, or a 24%, net increase due primarily to an increase of $18.3 million due to new product sales driven by an infant formula launch at a major retailer and Prevacid^®, and e-commerce growth in the OTC and nutrition categories. Additional OTC category increases relate to market share gains from store brand competitors due to greater consumer purchases of existing and new products, and increased store brand penetration market-wide versus national brand. All of these drivers include the positive impact from a surge in demand for certain products due to consumer behavior surrounding the COVID-19 pandemic.

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CSCA

Additionally, there was an increase of $55.3 million from our acquisition of Ranir. These increases were partially offset by a $5.0 million decrease due to discontinued products; partially offset by

• $20.6 million decrease due primarily to:

◦ $19.6 million due to our divested animal health business; and

◦ $1.0 million of unfavorable Mexican peso foreign currency translation.

Operating income increased $30.4 million, or 32%, due primarily to:

• $31.5 million increase in gross profit due primarily to increased net sales as described above, partially offset by carryover impact from the prior year operating inefficiencies at one of our infant nutrition facilities. Gross profit as a percentage of net sales decreased 80 basis points due primarily to operating inefficiencies at one of our infant nutrition facilities, and the exited animal health business, which had relatively higher gross margins than the overall portfolio, partially offset by favorable product mix; partially offset by

• $1.1 million increase in operating expenses due primarily to the inclusion of Ranir, partially offset by the absence of expenses from the divested animal health business, and a decrease in expenses related to our current cost savings initiative.

CONSUMER SELF-CARE INTERNATIONAL

Recent Trends and Developments

• Towards the end of the quarter, we experienced an increase in demand for products included in our upper respiratory and vitamins, minerals and supplements categories and certain of our store brand products, as well as a decrease in demand for certain products in our skincare and personal hygiene category, attributed primarily to consumer reaction to COVID-19. We are uncertain as to what extent, or if, the demand shift will continue in the future and what the impact may be on our future results of operations.

• On February 13, 2020, we acquired Dexsil^®, a silicon supplement brand, from RXW Group Nv, for total cash consideration paid of approximately $8.0 million. The transaction was accounted for as an asset acquisition, in which we capitalized the consideration paid as a brand-named intangible asset. The acquisition provides additional opportunities for growth through new product launches and geographic expansion (refer to Item 1. Note 3).

Segment Financial Results

Three Month Comparison

	Three Months Ended
(in millions)	March 28, 2020			March 30, 2019
Net sales	$	382.7		$	350.8
Gross profit	$	179.9		$	168.4
Gross profit %	47.0		%	48.0		%
Operating income	$	25.0		$	8.1
Operating income %	6.5		%	2.3		%

Three Months Ended March 28, 2020 vs. Three Months Ended March 30, 2019

Net sales increased $31.9 million, or 9%, due to:

• $48.9 million, or a 14%, net increase due primarily to new product sales of $30.1 million driven partially by XLS-Medical Forte 5 and the ACO skincare line and a $21.0 million increase from our acquisition of Ranir. In addition volume increased in our upper respiratory and vitamins, minerals and supplements categories and UK store brand business, which included the positive impact from a surge in demand for certain products due to consumer behavior surrounding the COVID-19 pandemic. These increases were partially

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CSCI

offset by lower net sales in France, which has experienced overall declines and has been affected by strikes, regulatory restrictions and the COVID-19 pandemic. In addition the segment saw a decrease in sales of our existing weight management products; partially offset by

• $17.0 million decrease due primarily to:

◦ $13.3 million from unfavorable foreign currency translation primarily related to the Euro; and

◦ $3.7 million due to our divested Canoderm prescription product previously included in the Nordic region.

Operating income increased $16.9 million, or 209%, due to:

• $11.5 million increase in gross profit due primarily to increased net sales as described above, partially offset by operational inefficiencies. Gross profit as a percentage of net sales decreased 100 basis points due primarily to the acquisition of Ranir, which has a relatively lower gross margin than the overall portfolio, and operational inefficiencies, partially offset by favorable product mix; and

• $5.4 million decrease in operating expenses due primarily to favorable Euro foreign currency translation, a decrease in expenses related to our current cost savings initiative, and a decrease in advertising and promotion expense, partially offset by the inclusion of Ranir.

PRESCRIPTION PHARMACEUTICALS

Recent Trends and Developments

• Although pricing pressure is beginning to moderate, we continue to experience a year-over-year reduction in pricing in our RX segment due to competitive approvals against products in our portfolio and overall competitive pressures. We expect softness in pricing to continue to impact the segment for the foreseeable future.

• Towards the end of the quarter, as the COVID-19 pandemic gained momentum, we experienced increased customer interest in and demand for certain products that other competitors are struggling to consistently supply. It is too early to assess the scope and scale of this trend, which would depend on the duration and severity of supply disruptions that our competitors or we may experience, but we believe that our competitive advantage in supply chain strength and organizational efficiencies may allow us to, in the near term, benefit from the trend if competitors are unable to meet supply demands.

• On February 24, 2020, along with our partner Catalent Pharma Solutions, we received approval from the U.S. Food and Drug Administration on our abbreviated new drug application for generic albuterol sulfate inhalation aerosol, the first AB-rated generic version of ProAir^® HFA. We launched commercially shortly after the approval.

Segment Financial Results

Three Month Comparison

	Three Months Ended
(in millions)	March 28, 2020			March 30, 2019
Net sales	$	257.7		$	241.9
Gross profit	$	87.9		$	96.4
Gross profit %	34.1		%	39.9		%
Operating income	$	51.7		$	60.6
Operating margin	20.0		%	25.1		%

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RX

Three Months Ended March 28, 2020 vs. Three Months Ended March 30, 2019

Net sales increased $15.8 million, or 7%, due to:

• $14.7 million, or a 6%, net increase due to new product sales of $58.2 million driven mainly by the launch of generic albuterol sulfate inhalation aerosol, the scopolamine relaunch, and diclofenac sodium topical gel 1%. This includes the positive impact from a surge in demand for certain products due to customer behavior surrounding the COVID-19 pandemic. This increase was partially offset by pricing pressure due partially to testosterone gel 1.62%, which still had 180-day market exclusivity in the prior year period, and $4.8 million of discontinued low margin distribution products; and

• $1.1 million increase due to favorable foreign currency translation.

Operating income decreased $8.9 million, or 15%, primarily due to:

• $8.5 million decrease in gross profit, or a 580 basis point decrease in gross profit as a percentage of net sales, due primarily to pricing pressure, third party operational inefficiencies on partnered products and higher inventory costs on a key product, partially offset by the gross profit from the incremental sales driven by generic albuterol sulfate inhalation aerosol pre-launch inventory that was expensed as pre-commercialization product in the prior year.

Unallocated Expenses

Unallocated expenses are comprised of certain corporate services not allocated to our reporting segments and are recorded in Operating income on the Condensed Consolidated Statements of Operations. Unallocated expenses were as follows (in millions):

Three Months Ended
March 28, 2020		March 30, 2019
$	55.5	$	60.6

The decrease of $5.1 million in unallocated expenses during the three months ended March 28, 2020 compared to the prior year period was primarily due to a $7.9 million decrease in Restructuring expense related primarily to the reorganization of our executive management team and a $10.3 million decrease in legal and consulting fees, partially offset by an increase of $8.6 million in employee compensation expenses, and a $4.2 million increase in insurance related expenses.

Change in Financial Assets, Interest expense, net, and Other (income) expense, net (Consolidated)

	Three Months Ended
(in millions)	March 28, 2020			March 30, 2019
Change in financial assets	$	(1.6	)	$	(10.4	)
Interest expense, net	$	30.2		$	28.6
Other (income) expense, net	$	2.4		$	3.2

Change in Financial Assets

The proceeds from our 2017 sale of the Tysabri^® financial asset consisted of $2.2 billion in upfront cash and up to $250.0 million and $400.0 million in contingent milestone payments related to 2018 and 2020, respectively. During the year ended December 31, 2019 we received the $250.0 million contingent milestone payment.

During the three months ended March 28, 2020, the fair value of the Royalty Pharma contingent milestone payment related to 2020 increased by $1.6 million to $96.9 million, which is recorded on the Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets. The adjustment was driven by higher volatility, higher projected global net sales of Tysabri^® compared to the estimates in the prior period, and the estimated probability of achieving the earn-out. During the three months ended March 30, 2019, the fair value of the

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Perrigo Company plc - Item 2

Unallocated, Interest, Other, and Taxes

Royalty Pharma contingent milestone payments increased by $10.4 million driven by higher projected global net sales of Tysabri^® and the estimated probability of achieving the earn-out.

The Royalty Pharma payments from Biogen for Tysabri^® were $337.5 million in 2018, which triggered the $250.0 million milestone payment received during the first quarter of 2019. There is no contingent milestone based on 2019 sales of Tysabri^®. In order for us to receive the remaining contingent milestone payment of $400.0 million, Royalty Pharma payments from Biogen for Tysabri^® sales in 2020 must exceed $351.0 million. If Royalty Pharma payments from Biogen for Tysabri^® sales do not meet the prescribed threshold in 2020, we will write off the $96.9 million asset and record a loss. If the prescribed threshold is exceeded, we will increase the asset to $400.0 million and recognize income of $303.1 million in Change in financial assets on the Condensed Consolidated Statements of Operations (refer to Item 1. Note 6).

Interest Expense, Net

The $1.6 million increase during the three months ended March 28, 2020 compared to the prior year period was due primarily to increased interest expense as result of the 2019 Term Loan refinancing and a reduction in interest income received.

Other (Income) Expense, Net

The $0.8 million decrease during the three months ended March 28, 2020 compared to the prior year period was due primarily to unfavorable changes in revaluation of monetary assets and liabilities held in foreign currencies.

Income Taxes (Consolidated)

The effective tax rates were as follows:

Three Months Ended
March 28, 2020		March 30, 2019
7.2	%	21.1	%

The effective tax rate for the three months ended March 28, 2020 decreased compared to the prior period primarily due to additional interest and depreciation deductions provided for in the CARES Act. The CARES Act reduced income tax expense by approximately $20.0 million in the first quarter of 2020, of which $15.8 million relates to retroactive adjustments to the 2018 and 2019 tax years while $4.2 million relates to the 2020 tax year (refer to Item 1. Note 13 for more information on income taxes).

FINANCIAL CONDITION, LIQUIDITY, AND CAPITAL RESOURCES

We finance our operations with internally generated funds, supplemented by credit arrangements with third parties and capital market financing. We routinely monitor current and expected operational requirements and financial market conditions to evaluate other available financing sources including term and revolving bank credit and securities offerings. In determining our future capital requirements we regularly consider, among other factors, known trends and uncertainties, such as the Notice of Assessment ("NoA") and the draft and final Notices of Proposed Adjustment ("NOPAs"), the current COVID-19 pandemic, and other contingencies. We note that no payment of the additional amounts assessed by Irish Revenue pursuant to the NoA or proposed by the IRS in the NOPAs is currently required, and no such payment is expected to be required, unless and until a final determination of the matter is reached that is adverse to us, which could take several years in either case (refer to Item 1. Note 13 for additional information on the NoA and NOPAs). Based on the foregoing, management believes that our operations and borrowing resources are sufficient to provide for our short-term and long-term capital requirements, as described below. However, an adverse result with respect to our appeal of any material outstanding tax assessments or litigation, including securities or drug pricing matters, could ultimately require the use of corporate assets to pay such assessments, damages resulting from third-party claims, and related interest and/or penalties, and any such use of corporate assets would limit the assets available for other corporate purposes. As such, we continue to evaluate the impact of the above factors on liquidity and may determine that modifications to our capital structure are appropriate if market conditions deteriorate, favorable capital market opportunities become available,

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Financial Condition, Liquidity and Capital Resources

or any change in conditions relating to the NoA, the NOPAs, the COVID-19 pandemic or other contingencies have a material impact on our capital requirements.

Cash and Cash Equivalents

* Working capital represents current assets less current liabilities, excluding cash and cash equivalents, and excluding current indebtedness.

Cash, cash equivalents, cash flows from operations, and borrowings available under our credit facilities are expected to be sufficient to finance our liquidity and capital expenditures in both the short and long term. Although our lenders have made commitments to make funds available to us in a timely fashion under our revolving credit agreements and overdraft facilities, if economic conditions worsen, including due to the COVID-19 pandemic, or new information becomes publicly available impacting the institutions’ credit rating or capital ratios, these lenders may be unable or unwilling to lend money pursuant to our existing credit facilities. Should our outlook on liquidity requirements change substantially from current projections, we may seek additional sources of liquidity in the future.

Cash Generated by (Used in) Operating Activities

The $77.3 million increase in operating cash inflow was due primarily to:

• $74.0 million increase in cash due to the change in inventory, primarily related to increased sales;

• $48.1 million decrease in the use of cash due to the change in accrued customer programs, due primarily to pricing dynamics in our RX segment as well as timing of rebate and chargeback payments;

• $14.8 million increase in cash due to the change in net earnings after adjustments for items such as deferred income taxes, impairment charges, restructuring charges, changes in our financial assets, share-based compensation, amortization of debt premium, and depreciation and amortization; and

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Financial Condition, Liquidity and Capital Resources

• $14.9 million increase in cash due to the change in accrued liabilities, due primarily to changes in legal and litigation accruals and changes in our underlying hedge exposure, partially offset by value-added and property tax liability accruals; partially offset by

• $29.7 million decrease in cash due to the change in prepaid expenses due primarily to an increase in our directors and officers prepaid insurance and payments made for annual prepaid expenses, partially offset by payments received related to our cross currency swap;

• $21.6 million decrease in cash due to the change in accounts payable due primarily to the timing of payments and mix of payments terms; and

• $19.1 million decrease in cash due to the change in accounts receivable due primarily to timing of sales and receipt of payments.

Cash Generated by (Used in) Investing Activities

The $304.9 million decrease in investing cash flow was due primarily to:

• $250.0 million decrease in cash due to the absence of the Royalty Pharma contingent milestone proceeds received in the prior year period (refer to Item 1. Note 6);

• $11.3 million decrease in cash for a deposit paid for the High Ridge Brands acquisition (refer to Item 1. Note 17);

• $32.7 million decrease in cash due to acquisitions, primarily for the purchase of the Steripod^® brand for $24.9 million and the Dexsil^® brand for approximately $8.0 million (refer to Item 1. Note 3); and

• $12.7 million decrease in cash due to capital spending, primarily to increase tablet and infant formula capacity and for quality/regulation projects.

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Perrigo Company plc - Item 2

Financial Condition, Liquidity and Capital Resources

Cash Generated by (Used in) Financing Activities

The $106.3 million increase in financing cash flow was due primarily to:

• $102.3 million increase in net borrowings of revolving credit agreements and other financing; and

• $12.3 million decrease in payments on long-term debt; partially offset by

• $5.0 million increase in dividend payments.

Dividends    

The declaration and payment of dividends, if any, is subject to the discretion of our Board of Directors and will depend on our earnings, financial condition, availability of distributable reserves, capital and surplus requirements, and other factors our Board of Directors may consider relevant.

Share Repurchases

In October 2018, our Board of Directors authorized up to $1.0 billion of share repurchases with no expiration date, subject to the Board of Directors’ approval of the pricing parameters and amount that may be repurchased under each specific share repurchase program.

Borrowings and Capital Resources

Revolving Credit Agreements

On March 8, 2018, we entered into a $1.0 billion revolving credit agreement maturing on March 8, 2023 (the "2018 Revolver"). There were $100.0 million of borrowings outstanding under the 2018 Revolver as of March 28, 2020, which was drawn during the first quarter as a precautionary measure to provide additional liquidity and to

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Perrigo Company plc - Item 2

Financial Condition, Liquidity and Capital Resources

preserve financial flexibility during the COVID-19 pandemic. There were no borrowings outstanding under the 2018 Revolver as of December 31, 2019.

Term Loans and Notes

On March 8, 2018, we refinanced the €350.0 million outstanding under the previous term loan with the proceeds of a new €350.0 million ($431.0 million) term loan, maturing on March 8, 2020 (the "2018 Term Loan"). During the year ended December 31, 2019, we made $24.7 million in scheduled principal repayments on the 2018 Term Loan.

On August 15, 2019, we refinanced the €284.4 million ($317.1 million) outstanding under the 2018 Term Loan with the proceeds of a new $600.0 million term loan, maturing on August 15, 2022.

Overdraft Facilities

We have overdraft facilities available that we use to support our cash management operations. The balance outstanding under the facilities was $2.0 million as of March 28, 2020. There were no borrowings outstanding under the facilities as of December 31, 2019.

Leases

We had $152.7 million and $158.2 million of lease liabilities and $151.9 million and $157.5 million of lease assets as of March 28, 2020 and December 31, 2019, respectively.

Accounts Receivable Factoring

The total amount factored on a non-recourse basis and excluded from accounts receivable was $12.4 million and $10.0 million at March 28, 2020 and December 31, 2019, respectively.

We are in compliance with all covenants under our debt agreements as of March 28, 2020 (refer to Item 1. Note 9 and Note 10 for more information on all of the above lease activity and debt facilities, respectively).

Credit Ratings

Our credit ratings on March 28, 2020 were Baa3 (stable) and BBB- (stable) by Moody's Investors Service and S&P Global Ratings, respectively.

Credit rating agencies review their ratings periodically and, therefore, the credit rating assigned to us by each agency may be subject to revision at any time. Accordingly, we are not able to predict whether current credit ratings will remain as disclosed above. Factors that can affect our credit ratings include changes in operating performance, the economic environment, our financial position, and changes in business strategy. If changes in our credit ratings were to occur, they could impact, among other things, future borrowing costs, access to capital markets, and vendor financing terms.

Off-Balance Sheet Arrangements

We have no off-balance sheet arrangements that have a material current effect or that are reasonably likely to have a material future effect on our financial condition, changes in financial condition, net sales or expenses, results of operations, liquidity, capital expenditures, or capital resources. We acquire and collaborate on potential products still in development and enter into R&D arrangements with third parties that often require milestone payments to the third-party contingent upon the occurrence of certain future events linked to the success of the asset in development. Milestone payments may be required contingent upon the successful achievement of an important point in the development life cycle of the product. Because of the contingent nature of these payments, they are not included in our table of contractual obligations included in our 2019 Form 10-K and referred to below.

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Financial Condition, Liquidity and Capital Resources

Contractual Obligations and Commitments

There were no material changes in contractual obligations as of March 28, 2020 from those provided in our 2019 Form 10-K.

Significant Accounting Policies

Other than the adoption of ASU 2016-13 Financial Instruments - Credit Losses (refer to Item 1. Note 1) and ASU 2018-13 Fair Value Measurement Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement (refer to Item 1. Note 6), there have been no material changes to the accounting policies disclosed in our 2019 Form 10-K.

Critical Accounting Estimates

The determination of certain amounts in our financial statements requires the use of estimates. These estimates are based upon our historical experiences combined with management’s understanding of current facts and circumstances. Although the estimates are considered reasonable based on the currently available information, actual results could differ from the estimates we have used. Below are the updates regarding critical accounting estimates which required judgment in the preparation of our financial statements during the three months ended March 28, 2020. The below disclosures should be read in conjunction with our 2019 Form 10-K.

Change in Financial Assets

We valued our contingent milestone payments from Royalty Pharma using a modified Black-Scholes Option Pricing Model ("BSOPM"). Key inputs in the BSOPM are the estimated volatility and rate of return of royalties on global net sales of Tysabri^® that are received by Royalty Pharma until the contingent milestones are resolved. As of March 28, 2020, volatility and the estimated fair value of the milestones had a positive relationship such that higher volatility translates to a higher estimated fair value of the contingent milestone payments. Rate of return and the estimated fair value of the milestones had an inverse relationship, such that a lower rate of return correlates with a higher estimated fair value of the contingent milestone payments. We assess volatility and rate of return inputs quarterly by analyzing certain market volatility benchmarks and the risk associated with Royalty Pharma achieving the underlying projected royalties. The table below represents the volatility and rate of return:

	Three Months Ended
	March 28, 2020		March 30, 2019
Volatility	35.0	%	30.0	%
Rate of return	7.29	%	8.02	%

We also consider Biogen’s quarterly Tysabri earnings along with forecasts from third party analysts in our royalty projections. In our estimation process as of March 28, 2020, we considered risks associated with COVID-19 on Tysabri sales in 2020, including but not limited to, the potential for disruptions and delays in dosing of Tysabri in physician office and hospital settings. We will continue monitoring Tysabri earnings and the development of COVID-19 impacts in our quarterly valuation assessment. In order for us to receive the remaining contingent milestone payment of $400.0 million, Royalty Pharma payments from Biogen for Tysabri^® sales in 2020 must exceed $351.0 million. If Royalty Pharma payments from Biogen for Tysabri^® sales do not meet the prescribed threshold in 2020, we will write off the $96.9 million asset and record a loss. If the prescribed threshold is exceeded, we will increase the asset to $400.0 million and recognize income of $303.1 million in Change in financial assets on the Condensed Consolidated Statements of Operations (refer to Item 1. Note 6).

Goodwill

Goodwill represents amounts paid for an acquisition in excess of the fair value of net assets received. We have six reporting units subject to impairment testing annually, which we perform on the first day of the fourth quarter of the fiscal year. We perform impairment testing more frequently if events suggest an impairment may exist. The test for impairment requires us to make several estimates about fair value, most of which are based on

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Perrigo Company plc - Item 2

Unallocated, Interest, Other, and Taxes

projected future cash flows and market valuation multiples. The estimates associated with the goodwill impairment tests are considered critical due to the judgments required in determining fair value amounts, including projected future cash flows that include assumptions about future performance. The discount rates used in testing each of our reporting units’ goodwill for impairment during our interim and annual testing are based on the weighted average cost of capital determined for each of our reporting units.

The discounted cash flow forecasts used for our reporting units include assumptions about future activity levels in the near term and longer-term. If growth in our reporting units is lower than expected, we may experience deterioration in our cash flow forecasts that may indicate goodwill in one or more reporting units is impaired in future impairment tests. An increase in the discount rate could negatively impact the estimated fair value of the reporting units and lead to a future impairment. Certain macroeconomic factors which are not controlled by the reporting units, such as rising inflation or interest rates, could cause an increase in the discount rate to occur. Deterioration in performance of our reporting units, such as lower than expected revenue or profitability that has a sustained impact on future periods, could also represent potential indicators of impairment requiring further impairment analysis.

We reviewed our reporting units for impairment indicators during the three months ended March 28, 2020.  Our reporting units had strong financial performance in this period, and the current year results remained in line with our long-term projections as of March 28, 2020. We did not identify any events or changes related to COVID-19 or other circumstances that more likely than not reduced the fair value of a reporting unit below its carrying amount.  We continue to monitor the progress of our reporting units and assess them for potential impairment should impairment indicators arise, as applicable, and at least annually during our fourth quarter impairment testing. 

ITEM 3.        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes to our quantitative or qualitative disclosures found in Item 7A, "Quantitative and Qualitative Disclosures about Market Risk," of our 2019 Form 10-K.

ITEM 4.        CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) or 15d-15(e) of the Exchange Act) as of March 28, 2020. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that our disclosure controls and procedures are effective in ensuring that all material information relating to us and our consolidated subsidiaries required to be included in our periodic SEC filings would be made known to them by others within those entities in a timely manner and that no changes are required at this time.

Evaluation of the Effectiveness of Internal Control over Financial Reporting

Our management assessed the effectiveness of our internal control over financial reporting as of March 28, 2020. The framework used in carrying out our evaluation was the 2013 Internal Control - Integrated Framework published by the Committee of Sponsoring Organizations ("COSO") of the Treadway Commission. In evaluating our information technology controls, we also used components of the framework contained in the Control Objectives for Information and related Technology, which was developed by the Information Systems Audit and Control Association’s IT Governance Institute, as a complement to the COSO internal control framework. Management has concluded that our internal control over financial reporting was effective as of March 28, 2020. The results of management’s assessment have been reviewed with our Audit Committee.

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Perrigo Company plc - Item 4

Controls and Procedures

Changes in Internal Control over Financial Reporting

We acquired Ranir during the third quarter of 2019 (refer to Item 1. Note 3). As permitted by Securities and Exchange Commission Staff interpretive guidance for newly acquired businesses, management excluded Ranir from its evaluation of internal control over financial reporting as of March 28, 2020. We are in the process of documenting and testing Ranir’s internal controls over financial reporting. We will incorporate Ranir into our annual report on internal control over financial reporting for our year ending December 31, 2020. As of March 28, 2020, assets excluded from management’s assessment totaled $869.4 million. Ranir contributed $76.3 million of Net sales and $7.7 million of Operating income in our Condensed Consolidated Statements of Operations for the three months ended March 28, 2020.

PART II.     OTHER INFORMATION

ITEM 1.    LEGAL PROCEEDINGS

Refer to Item 1. Note 13 and Item 1. Note 14 of the Notes to the Condensed Consolidated Financial Statements.

ITEM 1A.    RISK FACTORS

Our Annual Report on Form 10-K for the year ended December 31, 2019 includes a detailed discussion of our risk factors. At the time of this filing, there have been no material changes to the risk factors that were included in the Form 10-K, other than as described below.

Adverse Economic Impacts of Coronavirus Pandemic

On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic, as the new coronavirus, unknown to health officials just three months earlier, has spread rapidly from Asia to the Middle East, Europe, and the United States. As the rate of infection continues to accelerate in many countries, attempts are being made to reduce the spread of the coronavirus, including quarantines, government restrictions on movement, business closures and suspensions, canceled events and activities, self-isolation, and other voluntary and/or mandated changes in behavior. Both the outbreak of the disease and the actions to slow its spread have had an adverse impact on our operations by, among other things, disrupting our manufacturing operations, affecting the supply of raw materials and third party supplied finished goods, and preventing many of our employees from coming to work. The Company has responded to such impacts by, among other things, implementing protocols to protect the health of factory workers, adjusting production schedules, and seeking alternate suppliers where available, and so far, most of our facilities have continued to produce at high levels despite these challenges. However, going forward, the outbreak of the disease and the actions to slow it could have an adverse impact on our financial condition, our supply chains and other operations, our results of our operations, consumer demand for our products and our ability to access capital. The magnitude of any such adverse impacts cannot currently be determined, but such adverse impacts could be material, depending on: the duration, intensity, and continued spread of the disease; the duration of business closure and similar government orders; the process by which government authorities permit businesses to reopen and employees to return to work; the scale and timing of any additional waves of the outbreak as restrictions on community movement are relaxed; the severity of any economic downturn resulting from the pandemic; the effectiveness of the Company's efforts at mitigation; and other factors, both known and unknown, many of which are likely to be outside our control. In addition, to the extent that any increased sales of our products during the initial stages of the outbreak may reflect "pantry stocking", consumer demand for such products in future periods may be correspondingly reduced.

58

Perrigo Company plc - Item 6

Exhibits

ITEM 6.    EXHIBITS

Exhibit Number	Description
3.1	Certificate of Incorporation of Perrigo Company plc (formerly known as Perrigo Company Limited) (incorporated by reference from Exhibit 4.1 to the Company’s Registration Statement on Form S-8 filed on December 19, 2013).
3.2	Memorandum and Articles of Association of Perrigo Company plc, as amended and restated (incorporated by reference from Exhibit 3.2 to the Company’s Quarterly Report on Form 10-Q filed on August 10, 2017).
10.1	Perrigo Company Employee Severance Programme - Ireland, effective April 9, 2020 (filed herewith).
10.2	Employment Agreement between Perrigo Pharma International D.A.C. and James Dillard, dated January 25, 2019 (filed herewith).
31.1	Rule 13a-14(a) Certification by Murray S. Kessler, Chief Executive Officer (filed herewith).
31.2	Rule 13a-14(a) Certification by Raymond P. Silcock, Chief Financial Officer (filed herewith).
32	Certification Pursuant to 18 United States Code 1350 and Rule 13a-14(b) of the Securities Exchange Act of 1934 (furnished herewith).
101. INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document.
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document.
101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
104	Cover Page Interactive Date File, formatted in Inline XBRL (contained in Exhibit 101).

59

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		PERRIGO COMPANY PLC
		(Registrant)
Date:	May 5, 2020	/s/ Murray S. Kessler
		Murray S. Kessler
		Chief Executive Officer and President
		(Principal Executive Officer)
Date:	May 5, 2020	/s/ Raymond P. Silcock
		Raymond P. Silcock
		Chief Financial Officer
		(Principal Accounting and Financial Officer)

60

EX-10.1

Exhibit 10.1

THE PERRIGO EMPLOYEE SEVERANCE PROGRAMME

IRELAND

Strictly Confidential    

SECTION 1	INTRODUCTION
SECTION 2	TERMS OF SEVERANCE PROGRAMME
SECTION 3	WHAT HAPPENS TO ALL BENEFITS
SECTION 4	REDUNDANCY TAXATION
SECTION 5	SOCIAL WELFARE ENTITLEMENTS
SECTION 6	OTHER INFORMATION/ADVICE
SECTION 7	PRACTICAL “TO DO” LIST UPON LEAVING PERRIGO
SECTION 8	USEFUL FUTURE CONTACT DETAILS
IMPORTANT NOTICES 1.The information in this Booklet, and indeed any individual advice that you may receive from the Company (or the advisors it retained at a later stage), is based on the Company’s understanding of current legislation, particularly in the tax, pension and social welfare areas. It will, of course, be up to the relevant authorities to determine your exact tax position and your Social Welfare entitlements. Pension benefits will be determined in accordance with and subject to the relevant pension deeds and rules as well as Revenue limits. You should take appropriate advice on the information contained in the Booklet. 2.This Severance Programme contains the entire terms of severance for employees of Perrigo and all previous programmes, plans, agreements, understandings, assurances, statements, promises, warranties, representations (whether written or oral) provided by Elan or Perrigo are superseded by this Severance Programme.

1

1. INTRODUCTION

The Severance Programme commenced on 18 December 2013 for a period of three years to 18 December 2016. On 8 November 2016 the Severance Programme was approved for a further period of three years and will terminate on 18 December 2019. On 10 November 2019 the Severance Programme was amended and approved for a further period of three years and will terminate on 18 December 2022.

The Severance Programme will apply where you are

1. made redundant; or

2. terminated without cause; or

3. relocated from your existing place of work; or

4. subject to a material diminution of your authority, duties or responsibilities; or

5. subject to a material diminution in your salary,

The Severance Programme outlines:

• the financial terms and conditions of the Programme;

• details of how it will operate in practice, and

• the support services made available to you.

The Company will engage the services of specialist advisors who will be able to provide additional guidance in the areas of:

• Your estimated tax position;

• Your pension entitlements; and

• Outplacement service for career planning and guidance.

Throughout this process, all information will be treated in confidence. The Company encourages you to make full use of the services provided to help you effectively prepare for your future.

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2. TERMS OF SEVERANCE PROGRAMME

2.1 Statutory Redundancy

Terms	Employees with 104 weeks or more weeks’ continuous service with the Company are eligible for a statutory redundancy payment. Statutory Redundancy is calculated on the basis of: - a.Two weeks pay for each year of service plus b.One week’s additional pay.
Eligible Pay	Statutory Redundancy is calculated by reference to your continuous years of service and is based on your actual gross weekly wage at the date of yournotification of redundancy. There is a statutory ceiling of €600 per week; any excess of this limit is not included in the calculation of your statutory redundancy payment – e.g. if an employee’s basic pay is €650 per week the €600 amount is used.
Service	Statutory Payment is based on years of reckonable service. If the total amount of reckonable service is not an exact number of years, the “excess” days are credited as a proportion of a year. Reckonable service includes the following: vAll or part of a week an employee is at work vPeriod of up to 52 consecutive weeks absence due to occupational injury vPeriod of up to 26 weeks due to illness or non occupational injury vAny authorised absences by the employer which includes holidays, compassionate leave, career break or short-time vAny periods whilst an employee is on protected leave – including maternity, additional maternity leave, parental leave, carer’s leave and adoptive leave.

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2.2 Discretionary Ex-Gratia Payment

Perrigo provides an enhanced severance payment over & above the statutory entitlement as set out below

for all employees through Band B:

Terms	Each affected employee with 2 or more year’s continuous reckonable service will receive 6 WEEKS PAY PER EACH YEAR OF SERVICE (exclusive of Statutory) plus 1 additional week. Employees with 1.5 years of continuous reckonable service but less than 2 years of continuous reckonable service the ex-gratia payment will receive 12 weeks pay plus 1 additional week. Employees with less than 1.5 years of continuous reckonable service will receive 8 weeks pay plus 1 additional week. The maximum ex-gratia payment will be 79 weeks of pay i.e. 78 weeks plus 1 additional week.
Eligible Pay	The Discretionary Ex-Gratia lump sum will be based on your actual gross weekly wage at the date of yournotification of redundancy. Calculation of ex-gratia payments does not include potential amounts available under any discretionary Company bonus programme (‘bonuses’), fixed allowances or amounts ‘in lieu of benefits’ such as Company cars. The cap of €600 per week does not apply in respect of the Company’s additional Ex-Gratia payment.
Service	The Discretionary Ex-Gratia Payment is based on years of reckonable service. If the total amount of reckonable service is not an exact number of years, part-years of 6 months or more will count as an additional year (e.g. 5 years & 7 months service will be rounded to 6 years) “

4

The Discretionary Ex-Gratia Terms for Employees at Band A (Vice President) level and above, which are not in addition to the Band B and below Ex-Gratia payment, are as follows:

Employment Classification	Discretionary Ex-Gratia Terms for Bands A or higher
Band A (VP)	Seventy-eight (78) Weeks of Pay plus an amount equal to the Eligible Employee’s target annual bonus for the year in which the Severance date occurs.
Band A (SVP)	Two times (2x) the sum of (a) fifty-two weeks (52) Weeks of Pay (prior to any reduction due to a Significant reduction in Scope or Base Compensation, is applicable) and (b) the Eligible Employee’s target annual bonus for the year in which the Severance Date occurs. Furthermore, the Eligible Employee will be entitled to the benefits of the Excise Tax Gross-Up Payment, if applicable.
EVP	Two and one half times (2.5x) the sum of (a) fifty-two weeks (52) Weeks of Pay (prior to any reduction due to a Significant reduction in Scope or Base Compensation, if applicable) and (b) the Eligible Employee’s target annual bonus for the year in which the Severance Date occurs.

Eligible Pay

The Discretionary Ex-Gratia lump sum will be based on your actual gross weekly wage at the date of yournotification of redundancy.

Calculation of ex-gratia payments does not include fixed allowances or amounts ‘in lieu of benefits’ such as Company cars.

The cap of €600 per week does not apply in respect of the Company’s additional Ex-Gratia payment.

Service

The Discretionary Ex-Gratia Payment is based on years of reckonable service. If the total amount of reckonable service is not an exact number of years, part-years of 6 months or more will count as an additional year (e.g. 5 years & 7 months service will be rounded to 6 years

Conditions of Receipt of the Discretionary Ex-Gratia Payment. The Discretionary Ex-Gratia amount is subject to the employee’s co-operation being provided during their transition period and remaining with the Company until the termination date, agreed with the Company.

This payment is discretionary on behalf of the Company and will be subject to and will only be paid on receipt of a Voluntary Settlement Agreement/ Termination Letter signed by the employee. The terms of this benefit are at all times at the sole discretion of the Company and may be subject to review and amendment at any time. If an employee elects not to sign the Voluntary Settlement Agreement/ Termination Letter the employee will receive their statutory entitlements only.

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2.3 Notice Periods

Your notice period is as stated in your individual contract of employment (e.g., a month for employee’s in Bands 1 to 3 or 3 months notice for employee’s at Associate Director or above). The Minimum Notice & Terms of Employment Act lays down statutory minimum periods of notice which are dependent on an employee’s length of service as follows:

Length of Service	Notice Period
13 weeks but less than 2 years	1 weeks notice
2 years but less than 5 years	2 weeks notice
5 years but less than 10 years	4 weeks notice
10 years but less than 15 years	6 weeks notice
15 years or more	8 weeks notice

You will be entitled to receive the higher of the two notice periods. For example, if you have 2 month’s notice under your contract of employment but have 5 years service with the Company you will be entitled to the 2 month’s notice.

Employees are expected to be available for and to work at a minimum 2 weeks of their notice period; however, the Company ultimately reserves the right to make payment in lieu of notice periods in full or part. Where an employee on their own request seeks an earlier release date and the Company agrees to facilitate this, no payments shall be made in lieu of notice period.

When monies are paid in lieu of notice the date of termination for Statutory Redundancy purposes is the date in which the minimum notice (identified in the above table), had it been given, would have expired. Notice required under the Redundancy Acts may run concurrently with other notice requirements.

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3. WHAT HAPPENS TO ALL BENEFITS

The following list will advise eligible employees on how each Perrigo benefit will be treated. Please review the following details to ensure you fully understand the status of each benefit that may apply to you.

Please Note: Where these benefits continue for a period of time after you have left Perrigo payroll due to being paid in lieu of notice – existing benefits will remain in place until your termination of employment.

Pension (including AVCs)

Employer contributions to your pension fund will be paid up until the termination of your employment. In addition, employee contributions will also continue to be deducted from your payroll up until your termination date. Upon termination Mercer will send you out a withdrawal statement to your home address within a couple of weeks. This statement will outline all pension options available to you.

As your pension entitlement can impact your overall tax liability, with regard to any severance lump sum payment that you may receive, the Company will make arrangements for a representative of Mercer to be on site to provide you with information and advice on the options available to you. Prior to this meeting with Mercer, individual details will be submitted to Mercer to determine pension augmentation options and tax implications.

Life Assurance

You will continue to have Death in Service Benefit up until your termination date (inclusive of notice period). In addition, Perrigo has arranged to provide you with a special Death in Service Benefit for a period of 6 months from your termination date at the end which the extended cover will automatically lapse. This special Death in Service benefit cover will be based on your salary at the date of leaving and the level of cover will be four times your salary. Please note that where underwriting is in place and terms of cover are less than four times salary these terms will automatically be carried forward into this extended cover.

Once the six-month extended cover has been reached you have the option to continue part or all of your death benefit under the scheme howevera Statement of Health form and/or medical examination will be required. This option remains available to you for one month after your leaving date. If you wish to continue part or all of your cover after this date, please discuss this with Mercer directly and they can arrange to prepare a quotation for you.

We strongly encourage you to ensure that alternative life cover is put in place before the extended period finishes.

Disability Benefit/ Permanent Health Insurance

You will have Disability Benefit cover up until your termination date (inclusive of notice period). After this period, your cover under the Perrigo plan will cease.

Health Insurance

Your current health insurance cover will remain in place up until your date of termination. If you are paying for your health insurance cover via payroll deduction, the cost of this cover up until your termination date will be deducted from your final payroll. In addition, any health insurance allowance being paid to you via payroll will cease as of your termination date. If you currently are not paying for health insurance cover via payroll deduction and instead are paying the health insurer directly please ensure that you submit a health insurance allowance claim form along with proof of payment immediately to HR or Payroll in order to claim for any health insurance allowance that may be due to you. This allowance would be processed in your final payroll (subject to applicable withholdings).

7

Upon termination of employment it will be your responsibility to pay your Health Insurance provider directly in order to maintain cover. If you are currently a member of the Perrigo Group Scheme with VHI and would like to transfer your healthcare cover to an individual membership from the date of leaving Perrigo please contact the following:

• VHI Healthcare – Krystle Fitzpatrick 01 887 1749

TaxSaverCommuter

Where applicable, the total amount owing on the cost of your tax saver commuter ticket will be fully deducted from your final payroll cheque as the ticket cannot be cancelled. Please note that Annual Tickets are non transferable. Only the person named on the ticket may use it for travel. It cannot be resold or used by anyone else.

Employee Assistance Program

You will continue to have access to the Employee Assistance Program (Optum) through the last day of the month of your termination date.

Annual Leave

You will be paid in lieu for any holidays that you have accrued or accrue during your employment up to the date of termination. These will be paid in your final payroll and taxed as normal. If you have taken more than your accrued entitlement, the excess will be deducted from your final payroll.

Employee Education Assistance

There will be no claw backs on money already advanced and paid out by the Company in association with education courses.

Sports & Social Club Benefits

Membership of the Sports & Social Club will cease upon termination of employment.

Company Property

All Company property without exception must be returned on or before your last day of employment.    This includes, but is not limited to:

• Laptop Computers

• Blackberry/IPhone/other cell phone

• Computer & printer hardware

• ID Badges

• Company Credit Cards

• Phone Cards

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4. REDUNDANCY TAXATION

The following is a general description of the Irish tax consequences of severance payments and is based on Irish tax law in effect at December 2019 This should not be construed as tax advice. The actual tax consequences of a severance payment will depend on an individual’s specific facts and circumstances and you should contact your own tax adviser in this regard.

Statutory redundancy and certain ex-gratia lump sums may be subject to favourable tax exemptions and reliefs on termination.

Severance packages generally form two parts – Statutory Redundancy and an additional ex-gratia payment that may be made available by an employer. Statutory redundancy payments are exempt from income tax, if due. The current tax rules relating to severance in excess of statutory redundancy are somewhat complex.

A brief summary of the main tax exemptions and reliefs available on the additional ex-gratia payment that an employer may provide are outlined below.

Employees may also be entitled to claim the highest of the following three tax exemptions, on the additional ex- gratia amount:

a) Basic Exemption, or

b) Increased Exemption, or

c) Standard Capital Superannuation Benefit

The tax exemptions relevant to an individual are based on personal circumstances, for example years’ service in the employment, remuneration, pension entitlements. These tax exemptions are calculated using complete years’ service only. The date of termination for tax exemption purposes is the date that the employment actually ceases and the individual leaves the employment.

It should be noted that the total exemptions an employee can claim over their lifetime is capped at €200,000. The Increased Exemption is also restricted if the employee claimed any tax exemption other than the Basic Exemption in the last 10 years.

a) Basic Exemption:

The basic exemption is €10,160 plus €765 for each complete year of service with the Company.

If we take the example of a person who joined the Company in December 2001 and leaves the Company in 2013, they would have 11 full years of service, so their basic exemption would be €10,160 plus €765 x 11 = €18,575.

b) Increased Exemption:

The basic exemption of €10,160, plus €765 for each full year of service can be increased by a further €10,000. The increased exemption is only available to individuals who have not made any claims in respect of a lump sum received in the previous ten tax years.

9

If you are a member of the Company pension scheme, the increased exemption of €10,000 is reduced by the amount of:

• Any tax-free lump sum from the pension scheme to which you may be immediately entitled or

• The present day value at the date of leaving employment of any tax-free lump sum which may be receivable from the pension scheme in the future.

Employees will have the option of waiving their entitlements to their tax-free lump sum from the Company pension scheme in order to avail of the full €10,000 increased exemption. A waiver form must be signed in this regard. If the lump sum from the pension scheme is more than €10,000 and you do not waive your entitlement to same, you are not due the increased exemption.

Revenue approval is required for the Increased Exemption.

c) SCSB (Standard Capital Superannuation Benefit):

This relief generally applies to those employees who have high earnings and/or long service with the Company. The formula for calculating the SCSB is:

A X B / 15 - C

Where:

A is the average annual remuneration for the last 36 months service to the date of termination

B is the number of complete years of service

C is the value of any tax-free lump sum received/receivable under the Company approved pension scheme.

Because of the interaction of taxation and your pension it is important that you receive independent advice on this. The Company will engage the services of Mercer to provide you with guidance in this area.

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5. SOCIAL WELFARE ENTITLEMENTS

Social Welfare considerations post Termination of Employment

Jobseeker's Benefit is a weekly payment from the Department of Social Protection (DSP) to people who are out of work and are covered by social insurance (PRSI). Jobseeker's Benefit used to be called Unemployment Benefit. If you don't qualify for Jobseeker's Benefit you may qualify for Jobseeker's Allowance.

Further information on these benefits can be found on the following website:

http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/unemployed_people/jobseekers_benefit.html

See Table below for contact details of some local Department of Social Protection offices in Dublin.

Postal Districts	Office	Phone Number	Opening Hours
Athlone	Barrack Street	090 649 2066	Mon – Fri
			9.30 – 12.00
			2.00 – 4.00
Dublin 1	North Cumberland Street	01 889 9500	Mon – Fri
			9.15 – 12.00
			2.00 – 4.00
Dublin 2	Pearse Street	01 636 9300	Mon – Fri
			9.15 – 12.00
			2.00 – 4.00
Other Regional Offices
Dublin 1	Amiens Street	01 704 3000
Dublin 5	Greendale Road	01 806 3800
Dublin 7	Navan Road	01 882 3100
Dublin 8	Ballyfermott	01 616 0300
Dublin 11	Ballymun	01 816 5100
Dublin 11	Finglas	01 864 0480
Dublin 14	Nutgrove	01 493 5266
Dublin 15	Blanchardstown	01 824 6300
Dublin 22	Clondalkin	01 403 0000
Dublin 24	Tallaght	01 452 7019
Co. Dublin	Balbriggan	01 802 0050
Co. Dublin	Dun Laoghaire	01 280 0288
Co. Dublin	Malahide	01 806 1040

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6. OTHER INFORMATION/ADVICE

6.1 Individual Value of Severance Terms

If you are made redundant you will receive a Preliminary Personal Statement at your initial consultation meeting. This form sets out:

• The terms of the agreement as they relate to you (i.e. your Eligible Pay for the purpose of the lump sum calculation)

These figures will give you a near approximation of your gross entitlements. Part of your severance package may be subject to tax as per revenue guidelines.

Note: Your final figures will be calculated based on actual data at termination date and therefore may differ to preliminary estimates.

6.2 Individual Advice Sessions

Advice sessions will be available on a one-to-one basis with consultants from Mercer. They will be able to provide you with more detailed information on pension options particularly as they relate to the tax reliefs available. Further details to follow.

6.3 Outplacement Advice

Outplacement support is a range of services that will be provided with the aim of assisting employees leaving the Company. This will include workshops and guidance: preparation of CVs, jobsearch, preparing for interviews, etc.

Details will be made available over the next couple of weeks.

6.4 References

HR will provide a standard, factual reference for all employees stating when the employee commenced employment with Perrigo, how much they earned, date of last promotion (if applicable) on request from a new employer.

More detailed references may be available in response to a direct request from a potential employer.

12

7. PRACTICAL “TO DO LIST” UPON LEAVING PERRIGO

Ö To claim Jobseeker’s Benefit you should call to your local Social Welfare Office. Also bring with you your redundancy documentation and your last P60.

Ö    Ensure your tax returns are up to date.

Ö Consider your pension options (they do not need to be entered immediately). You may wish to delay this decision until you find alternate employment.

Ö Review your need to replace Risk Benefits (e.g. life assurance, etc.) which will cease when you leave Perrigo.

Ö    Consider whether your health insurance cover needs to be maintained.

Ö    Should you change address please ensure to contact the various benefit providers in addition to payroll.

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8. USEFUL FUTURE CONTACT DETAILS

PERRIGO CONTACT LIST
Payroll
Valerie Healy	01 709 4623	valerie.healy@perrigo.com
Compensation & Benefits
John Castanos	01 709 4028	john.castanos@perrigo.com
HR
Louise Milner	01 709 4427	Louise.milner@perrigo.com

BENEFIT CONTACTS
Pension & Risk Benefits
Mercer - 1 6039877		john.redmond@mercer.com
Health Insurance
Krystle Fitzpatrick	01 887 1749	krystle.fitzpatrick@vhi.ie
Employee Assistance Program
Optum	1800 409 476	www.livewell.optum.com

14

EX-10.2

Perrigo Pharma International D.A.C.

The Sharp Building, Hogan Place,

Dublin 2, Ireland D02 TY74

T (+353 1) 709 4000

F (+353 1) 709 4082

Private & Confidential

January 25, 2019

James Dillard III    

Dear Jim,

This letter is to confirm the details of your transfer to Perrigo Pharma International D.A.C. in the position of Executive Vice President and Chief Scientific Officer, on the terms and conditions set out in the enclosed contract of employment.

Documents that are required to be completed/signed and returned by Feburary 15, 2019 are as follows:

▪ Contract of Employment*

▪ Employee Proprietary Information and Invention Assignment Agreement*

▪ New Employee Details Form

▪ Bank Details Form

Other documents for your review are as follows:

▪ Irish Employee Benefits Guide

By signing the contract of employment, you acknowledge it sets out the entire agreement between the parties and supersedes all prior oral and written agreements, understandings, commitments and practices between the parties. No amendments to this contract of employment may be made except in writing signed by a duly authorised representative of Perrigo Pharma International D.A.C. Please return all the above documentation by February 15, 2019.

We look forward to a smooth transition to our Ireland Global Headquarters in Dublin, Ireland. If you have any questions or would like additional information, please feel free to contact me at 269-686-1613 or rsherrington@perrigo.com

Yours sincerely,

/s/ Rebecca Herrington

Rebecca Herrington

Global Talent Acquisition
Perrigo Company plc

*Enclosed in duplicate. Please sign and return both copies.

Perrigo Pharma International D.A.C.

The Sharp Building, Hogan Place,

Dublin 2, Ireland D02 TY74

T (+353 1) 709 4000

F (+353 1) 709 4082

Private & Confidential

January 25, 2019

James Dillard III

Dear Jim,

This letter is to confirm the details of your transfer to Perrigo Pharma International D.A.C. in the position of Executive Vice President and Chief Scientific Officer. Our employment offer is subject to the terms and conditions outlined below.

1. You are employed primarily as Executive Vice President and Chief Scientific Officer reporting to Murray Kessler, CEO. You will perform the duties appropriate to this position as instructed by Perrigo including any such additional or alternative duties as Perrigo shall reasonably assign to you from time to time. Your Ireland employment will commence once you receive work authorization in Ireland. Perrigo will continue to recognize your original date of hire of January 14, 2019 for all other benefits.

2. Your normal hours of work will be from 9.00am to 5.30pm. Perrigo reserves the right to alter your normal working hours. You may be required to work such additional time as may be required to complete your responsibilities. Such additional time will be unpaid.

3. If your continued employment is subject to Perrigo holding a valid work permit/work visa for you, in the event that the work permit/work visa is withdrawn, your employment will terminate immediately and without notice. It is your responsibility to inform Perrigo if you require a work permit/work visa or any other permission to work in Ireland and if and when such permission has been withdrawn.

4. Your salary is € 500,625 gross per annum, subject to deductions of tax, PRSI and any other deductions required by law or provided for under this agreement. Your salary is payable monthly in arrears by way of bank transfer into your nominated bank account. This method of payment may be changed at Perrigo's discretion. A list of additional compensation and benefits are provided at Schedule 1, which can be found at the end of this document.

5. Perrigo reserves the right to require you to repay either by deduction from salary or any other method acceptable to Perrigo, any losses sustained through fraud or dishonesty on your part or any remuneration, expenses or any other payments which are overpaid to you whether made by mistake or otherwise. By signing this agreement, you hereby consent to any such deductions from sums due by Perrigo.

6. Subject to the production of satisfactory receipts and compliance with the Perrigo’s Expenses Policy, you will be reimbursed for all reasonable and genuine out of pocket expenses incurred by you in the carrying out of your duties.

7. Your normal place of work is at The Sharp Building, Hogan Place, Dublin 2, D02 TY74 but your duties may require travel to and work at other locations outside of Dublin and for other subsidiaries or associated companies of Perrigo, including overseas. Perrigo reserves the right to change the place of your

employment and you will be given reasonable notice of any such change. Any change to your place of work will not give rise to an entitlement to a payment to you for disturbance.

8. Either you or Perrigo may terminate this contract by giving three [3] month's notice in writing. Perrigo reserves the right to make a payment to you in lieu of any notice. In cases of misconduct, your employment may be terminated without notice. In the event of notice of termination being given by either party, Perrigo may request you not to attend for work or perform duties during the notice period. Nothing in this agreement shall prevent the giving of a lesser period of notice where both parties are in mutual agreement.

9. Perrigo's leave year runs from 01 January to 31 December and annual leave must be taken within the year. You are entitled to twenty-two (22) days annual leave per annum calculated by reference to time worked on a pro rata basis, in addition to public holidays in accordance with the Organisation of Working Time Act 1997. Annual leave must be agreed in advance with Perrigo and must be taken at times convenient to it. Accrued but unused annual leave, up to a maximum of five (5) days, may be carried over to the following holiday year in exceptional circumstances and at the discretion of Perrigo and in any event, must be taken within six (6) months of the end of the year during which the leave was accrued.

10. You must notify your manager/supervisor of any unplanned absence no later than one (1) hour after scheduled start time on the first and any subsequent day of absence (whether through illness or otherwise). In the event that you are unable to contact your manager/supervisor you must notify your Department Administrator. A voicemail may not be acceptable. Where there is continuing absence, you must keep Perrigo fully informed of your expected return to work. A medical certificate must be produced in respect of any illness-related absence from the third day of illness, and at such additional intervals as may be required by Perrigo and at least on a weekly basis. Perrigo reserves the right to have you medically examined by the Company Doctor, or a Company-nominated Specialist, at any time during your employment and you agree to the release of a medical report following any such examination directly to Perrigo.

Terms of Perrigo's sick pay scheme are detailed in the Sick Leave & Sick Pay Policy and further details are available from Human Resources. Perrigo may at its absolute discretion cease payments under the scheme where you fail to follow the absence notification procedures or fail to provide the required medical certification as outlined above or in circumstances where Perrigo believes your absence is not legitimate.

11. Perrigo reserves the right to lay you off from work or to reduce your working hours. You will receive as much notice as is reasonably possible prior to such lay-off or short-time. You will not be paid during a period of lay-off. You will be paid only in respect of hours actually worked during a period of short-time.

12. Perrigo has Grievance and Disciplinary Procedures which are applicable to all employees. For further information on Perrigo’s grievance and disciplinary policies please refer to the Employee Handbook. The Employee Handbook will be provided to you on your first day. Perrigo reserves the right to change, replace or withdraw its Grievance and Disciplinary Procedures at any time and you are required to comply with the policies and procedures in force from time to time.

13. Your attention is drawn to Perrigo's Safety Statement which is available for inspection and is located on the company premises. Please contact the Safety Department if a copy is required. You are required to comply with Perrigo’s health and safety practices and procedures and to use protective equipment and clothing where necessary.

14. It is a condition of your employment that you sign an Employee Proprietary Information and Invention Assignment Agreement when you commence employment and the provisions of the Employee Proprietary Information and Invention Assignment Agreement form part of your contract of employment.

15. You agree that Perrigo is permitted to hold personal information about you as part of its personnel and other business records and may use such information in the course of Perrigo’s business or that of any associated company. You agree that Perrigo may disclose such information to third parties in the event that such disclosure is, in Perrigo’s view, required for the proper conduct of Perrigo’s business or that of any associated company. It may also be necessary to share this information with potential or future employers, potential bidders and purchasers or in order to comply with any legal or regulatory obligations.

Perrigo takes all reasonable steps as required by law to ensure the safety, privacy and integrity of your personal information. Perrigo may need to share personal data including sensitive personal data with other related entities which are based abroad. This may involve a transfer of data, including your personal sensitive data, to a country which may not have the same data protection laws as Ireland. By signing this agreement, you consent to Perrigo holding, processing, transferring or disclosing such personal data to include sensitive data.

16. During your employment you shall not at any time without the prior written consent of Perrigo either alone or jointly with any other person carry on or be either directly or indirectly employed, concerned or interested in any business, prospective business or undertaking other than that of Perrigo. If, with the consent of Perrigo, you accept any other appointment or employment you must keep Perrigo accurately informed of the amount of time you spend working under that appointment.

17. You shall not be entitled to receive or obtain directly or indirectly any discount, rebate or commission as a result of any sale or purchase of goods or services affected or other business transacted (whether or not by you) by or on behalf of Perrigo or any associated company and if you (or any person in which you are interested) obtain any discount, rebate or commission you shall account to Perrigo for the amount received by you (or due proportion of the amount received by the person having regard to the extent of its interest therein).

18. Perrigo reserves the right to search your property, person or vehicle while on or departing from Perrigo's premises.

19. All notes, records, lists of customers, supplier and employees, correspondence, computer and other disks or tapes, data listings, codes, keys and passwords, designs, drawings and other documents or material whatsoever (whether made or created by you or otherwise and in whatever medium or format) relating to the business of Perrigo or any associated company or any of its or their clients and any copies of same remain the property of Perrigo or any associated company or client, and should be handed over by you to Perrigo or any associated company or client on demand by Perrigo and in any event on termination of your employment.

20. Perrigo reserves the right to make changes of a minor, administrative, or non-fundamental nature to the terms and conditions of your employment from time to time. Wherever practicable, you will be given advance notice of any such change.

21. You hereby warrant that by virtue of entering into this agreement you will not be in breach of any express or implied terms of any Court order, contract or any other obligation legally binding upon you.

22. No failure or delay by Perrigo in exercising any remedy, right, power or privilege under or in relation to this agreement or at law shall operate as a waiver of the same nor shall any single or partial exercise of any remedy, right, power or privilege preclude any further exercise of the same or the exercise of any other remedy, right, power or privilege.

23. This agreement is governed by and shall be construed in accordance with Irish law and the parties to this agreement hereby submit to the exclusive jurisdiction of the Irish Courts.

I accept and agree to be bound by the terms and conditions outlined in this agreement.

SIGNED: /s/ Robert WillisPerrigo Pharma International D.A.C.

Dated:29/1/19

SIGNED: /s/ James Dillard III (James Dillard III)      Dated: 25/01/2019

Schedule 1

Compensation and Benefits

Annual Performance Bonus:

Perrigo Pharma International D.A.C. embraces a pay-for-performance philosophy, as reflected in our Total Compensation program. You will participate in Perrigo’s Annual Inventive Plan (AIP) plan.  The AIP is a cash bonus plan. Target annual payout for the bonus is 65% of base salary.  Bonus payouts take place following the end of the calendar year, with payout occurring in mid-February.  Your first payout in February of 2020 will be pro-rated based upon your start date.  The Corporate AIP program is funded based on company performance; the actual payout includes both business and individual performance factors.

Annual Equity Award:

You are annually eligible to receive equity through Perrigo’s discretionary Long-Term Incentive (LTI) Plan. Perrigo grants equity using a combination of Performance-based Restricted Stock Units (PSUs) and Service-based Restricted Stock Units (RSUs).  You will be eligible for your initial discretionary LTI award in 2019. LTI awards are generally made following the start of the calendar/fiscal year in February or March.

Pension:

Perrigo operates a defined contribution pension scheme and also provides disability and life assurance benefits, details of which can be found in the Elan Pharma International Ltd., a subsidiary of Perrigo Company plc Defined Contribution Plan Explanatory Booklet. Perrigo reserves the right to terminate or vary these schemes as set out in the applicable documentation. Perrigo's retirement age is 65 at which time your employment will automatically terminate without notice. Perrigo's retirement age has been determined having taken into account the relevant factors (such as succession planning) as at the date of this agreement and is subject to review.

Health Insurance Allowance:

Perrigo will provide you with global health insurance through GeoBlue.

Car Allowance

Perrigo will provide you with a cash-car allowance (paid monthly in arrears) to the value of €24,000; gross per annum.  Benefit in Kind is payable by you on this amount.  This provision is governed by the terms in Perrigo’s Car Allowance Policy.

Relocation:

You also qualify for our international relocation program and the policy is enclosed for your review. This includes tax equalization back to the U.S.  (Please review full details in the International Relocation Policy.) If you elect at any time to sell you US based home to accommodate this or any company requested relocation, Perrigo will provide home sale benefits.

Executive Medical Benefit:

Every two (2) years you will be required to attend for an Executive Medical check-up at the Beacon Clinic in Dublin. This should be arranged through Perrigo Human Resources.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Murray S. Kessler, certify that:

1. I have reviewed this report on Form 10-Q of Perrigo Company plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2020

/s/ Murray S. Kessler

Murray S. Kessler

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Raymond P. Silcock, certify that:

1. I have reviewed this report on Form 10-Q of Perrigo Company plc;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a. all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting, which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2020

/s/ Raymond P. Silcock

Raymond P. Silcock

Chief Financial Officer

EX-32

Exhibit 32

The following statement is being made to the Securities and Exchange Commission solely for the purposes of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), which carries with it certain criminal penalties in the event of a knowing or willful misrepresentation.

Securities and Exchange Commission

450 Fifth Street NW

Washington, D.C. 20549

Re: Perrigo Company plc

Ladies and Gentlemen:

In accordance with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), each of the undersigned hereby certifies that:

(i) this Quarterly Report on Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

(ii) the information contained in this report fairly presents, in all material respects, the financial condition and results of operations of Perrigo Company plc.

Date:	May 5, 2020	/s/ Murray S. Kessler
		Murray S. Kessler
		Chief Executive Officer and President
Date:	May 5, 2020	/s/ Raymond P. Silcock
		Raymond P. Silcock
		Chief Financial Officer

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Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Mar. 28, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

Changes in our AOCI balances, net of tax were as follows (in millions):

	Fair Value of Derivative Financial Instruments, net of tax			Foreign Currency Translation Adjustments			Post-Retirement and Pension Liability Adjustments, net of tax			Total AOCI
Balance at December 31, 2019	$	12.7		$	132.9		$	(6.2	)	$	139.4
OCI before reclassifications	(8.0		)	(92.2		)	(1.9		)	(102.1		)
Amounts reclassified from AOCI	(1.4		)	—			—			(1.4		)
Other comprehensive income (loss)	$	(9.4	)	$	(92.2	)	$	(1.9	)	$	(103.5	)
Balance at March 28, 2020	$	3.3		$	40.7		$	(8.1	)	$	35.9

XML

Segment Information

3 Months Ended

Mar. 28, 2020

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Our segments reflect the way in which our management makes operating decisions, allocates resources, and manages the growth and profitability of the Company.

The tables below show select financial measures by reporting segment (in millions):

	Total Assets
	March 28, 2020		December 31, 2019
CSCA	$	4,179.2	$	3,990.2
CSCI	4,653.1		4,682.7
RX	2,568.4		2,628.5
Total	$	11,400.7	$	11,301.4

	Three Months Ended
	March 28, 2020							March 30, 2019
	Net Sales		Operating Income (Loss)			Intangible Asset Amortization		Net Sales		Operating Income (Loss)			Intangible Asset Amortization
CSCA	$	700.6	$	124.6		$	13.6	$	581.8	$	94.2		$	10.1
CSCI	382.7		25.0			38.3		350.8		8.1			44.1
RX	257.7		51.7			21.2		241.9		60.6			21.2
Unallocated	—		(55.6		)	—		—		(60.6		)	—
Total	$	1,341.0	$	145.7		$	73.1	$	1,174.5	$	102.3		$	75.4

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Revenue Recognition (Tables)

3 Months Ended

Mar. 28, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

We generated net sales in the following geographic locations⁽¹⁾ (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
U.S.	$	901.6	$	768.8
Europe(2)	372.6		340.9
All other countries(3)	66.8		64.8
Total net sales	$	1,341.0	$	1,174.5

(1) Derived from the location of the entity that sells to a third party.

(2) Includes Ireland net sales of $3.8 million and $5.2 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

(3) Includes net sales generated primarily in Israel, Mexico, Australia and Canada.

Product Category

We re-aligned our product categories in our CSCA and CSCI segments as of December 31, 2019. The re-alignment standardizes our categories and product level detail to provide consistency. This transformative step will optimize the way in which management reports and evaluates our business.

The following is a summary of our net sales by category (in millions); the comparative period reflects the product category re-alignment:

	Three Months Ended
	March 28, 2020		March 30, 2019
CSCA(1)
Upper respiratory	$	154.6	$	132.8
Pain and sleep-aids	120.4		91.3
Digestive health	106.9		102.3
Nutrition	102.2		99.6
Healthy lifestyle	85.8		76.0
Oral self-care	55.3		—
Skincare and personal hygiene	46.7		45.5
Vitamins, minerals, and supplements	6.4		6.3
Animal health	—		19.6
Other CSCA(2)	22.3		8.4
Total CSCA	700.6		581.8
CSCI
Skincare and personal hygiene	94.7		101.9
Upper respiratory	84.1		71.9
Vitamins, minerals, and supplements	48.5		45.8
Pain and sleep-aids	46.8		40.4
Healthy lifestyle	43.6		47.3
Oral self-care	23.2		1.6
Digestive health	6.0		7.2
Other CSCI(3)	35.8		34.7
Total CSCI	382.7		350.8
RX	257.7		241.9
Total net sales	$	1,341.0	$	1,174.5

(1)    Includes net sales from our OTC contract manufacturing business.

(2) Consists primarily of diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.    

(3)

Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.

Contract with Customer Balances

The following table provides information about contract assets from contracts with customers (in millions):

	Balance Sheet Location	March 28, 2020		December 31, 2019
Short-term contract assets	Prepaid expenses and other current assets	$	28.1	$	26.3

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Acquisitions - Pro Forma Information (Details) - Ranir Global Holdings, LLC $ in Millions	3 Months Ended
	Mar. 30, 2019 USD ($)
Business Acquisition [Line Items]
Net sales	$ 1,248.4
Net income	$ 70.7

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Revenue Recognition - Additional Information (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019
Disaggregation of Revenue [Line Items]
Net sales	[1]	$ 1,341.0	$ 1,174.5
Contract manufacturing
Disaggregation of Revenue [Line Items]
Net sales		$ 49.5	$ 67.3

[1] Derived from the location of the entity that sells to a third party.

XML

Segment Information (Tables)

3 Months Ended

Mar. 28, 2020

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The tables below show select financial measures by reporting segment (in millions):

	Total Assets
	March 28, 2020		December 31, 2019
CSCA	$	4,179.2	$	3,990.2
CSCI	4,653.1		4,682.7
RX	2,568.4		2,628.5
Total	$	11,400.7	$	11,301.4

	Three Months Ended
	March 28, 2020							March 30, 2019
	Net Sales		Operating Income (Loss)			Intangible Asset Amortization		Net Sales		Operating Income (Loss)			Intangible Asset Amortization
CSCA	$	700.6	$	124.6		$	13.6	$	581.8	$	94.2		$	10.1
CSCI	382.7		25.0			38.3		350.8		8.1			44.1
RX	257.7		51.7			21.2		241.9		60.6			21.2
Unallocated	—		(55.6		)	—		—		(60.6		)	—
Total	$	1,341.0	$	145.7		$	73.1	$	1,174.5	$	102.3		$	75.4

XML

Summary of Significant Accounting Policies

3 Months Ended

Mar. 28, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General Information

The Company

Perrigo Company plc was incorporated under the laws of Ireland on June 28, 2013 and became the successor registrant of Perrigo Company, a Michigan corporation, on December 18, 2013 in connection with the acquisition of Elan Corporation, plc ("Elan"). Unless the context requires otherwise, the terms "Perrigo," the "Company," "we," "our," "us," and similar pronouns used herein refer to Perrigo Company plc, its subsidiaries, and all predecessors of Perrigo Company plc and its subsidiaries.

We are dedicated to making lives better by bringing Quality, Affordable Self-Care Products that consumers trust everywhere they are sold. We are a leading provider of over-the-counter ("OTC") health and wellness solutions that enhance individual well-being by empowering consumers to proactively prevent or treat conditions that can be self-managed. We are also a leading producer of generic prescription pharmaceutical topical products such as creams, lotions, and gels as well as nasal sprays and inhalers.

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2019. In the opinion of management, all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation of the unaudited Condensed Consolidated Financial Statements have been included and include our accounts and the accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Segment Reporting

Our reporting and operating segments are as follows:

• Consumer Self-Care Americas ("CSCA") comprises our consumer self-care business (OTC, contract manufacturing, infant formula, and oral self-care categories and our divested animal health category) in the U.S., Mexico and Canada.

• Consumer Self-Care International ("CSCI") comprises our branded consumer self-care business primarily in Europe, our consumer self-care businesses in the United Kingdom and Australia, and our liquid licensed products business in the United Kingdom.

• Prescription Pharmaceuticals ("RX") comprises our prescription pharmaceuticals business in the U.S., predominantly generics, and our pharmaceuticals and diagnostic businesses in Israel.

Recent Accounting Standard Pronouncements

Below are recent Accounting Standard Updates ("ASU") that we are still assessing to determine the effect on our Condensed Consolidated Financial Statements. We do not believe that any other recently issued accounting standards could have a material effect on our Condensed Consolidated Financial Statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

Recently Issued Accounting Standards Not Yet Adopted
Standard	Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
ASU 2018-14: Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans	This guidance amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other post-retirement plans.	December 31, 2020	We are currently evaluating the implications of adoption to related disclosures in our Consolidated Financial Statements.
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes	This guidance enhances and simplifies various aspects of the income tax accounting guidance in ASC 740.	January 1, 2021	We are currently evaluating the implications of adoption on our Consolidated Financial Statements.

Recently Adopted Accounting Standard Update

On January 1, 2020, we adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326"), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the Current Expected Credit Loss ("CECL") methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost.

We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, which includes trade receivables and contract assets. The cumulative effect of adopting ASC 326 was not material.

Allowance for Credit Losses

Expected credit losses on trade receivables and contract assets are measured collectively by geographic location. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and for reasonable and supportable forecasts. Historical credit loss experience provides the primary basis for estimation of expected credit losses. Adjustments to historical loss information may be made for significant changes in a geographic location’s economic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis. These receivables are not included in the collective evaluation.

The allowance for credit losses is a valuation account that is deducted from the instruments’ cost basis to present the net amount expected to be collected. Trade receivables and contract assets are charged off against the allowance when the balance is no longer deemed collectible.

The following table presents the allowance for credit losses activity (in millions):

	Three Months Ended
	March 28, 2020
Beginning balance	$	6.7
Provision for credit losses	0.8
Receivables written-off	(0.1		)
Recoveries collected	—
Currency translation adjustment	(0.3		)
Ending balance	$	7.1

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Cover Page - shares	3 Months Ended
	Mar. 28, 2020	May 01, 2020
Cover [Abstract]
Document type	10-Q
Document Quarterly Report	true
Document period end date	Mar. 28, 2020
Document Transition Report	false
Entity registrant name	Perrigo Company plc
Entity Incorporation, State or Country Code	L2
Entity Address, Address Line One	The Sharp Building,
Entity Address, Address Line Two	Hogan Place,
Entity Address, City or Town	Dublin 2,
Entity Address, Country	IE
Entity Address, Postal Zip Code	D02 TY74
Country Region	353
City Area Code	1
Local Phone Number	7094000
Title of 12(b) Security	Ordinary shares
Trading Symbol	PRGO
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity central index key	0001585364
Entity Interactive Data Current	Yes
Current calendar year end date	--12-31
Entity filer category	Large Accelerated Filer
Entity small business	false
Entity emerging growth company	false
Entity Shell Company	false
Entity common stock, shares outstanding		136,313,364
Entity File Number	001-36353
Document calendar year focus	2020
Document calendar period focus	Q1
Amendment flag	false

XML

Derivative Instruments and Hedging Activities - Non-designated Derivatives (Details) - Non-designated derivatives: - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain/(Loss) Recognized against Earnings	$ 12.1	$ (8.4)
Foreign currency forward contracts | Other (income) expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain/(Loss) Recognized against Earnings	10.4	(8.8)
Foreign currency forward contracts | Interest expense, net
Derivative Instruments, Gain (Loss) [Line Items]
Amount of Gain/(Loss) Recognized against Earnings	$ 1.7	$ 0.4

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Leases - Annual Future Maturities of Leases (Details) - USD ($) $ in Millions	Mar. 28, 2020	Dec. 31, 2019
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
2020	$ 27.4
2021	28.2
2022	21.0
2023	15.6
2024	12.3
After 2024	41.5
Total lease payments	146.0
Less: Interest	18.3
Present value of lease liabilities	127.7	$ 133.7
Finance Lease, Liability, Payment, Due [Abstract]
2020	3.4
2021	5.8
2022	3.2
2023	1.8
2024	1.4
After 2024	14.2
Total lease payments	29.8
Less: Interest	4.8
Present value of lease liabilities	25.0	24.5
Lease Liabilities, Payments, Due [Abstract]
2020	30.8
2021	34.0
2022	24.2
2023	17.4
2024	13.7
After 2024	55.7
Total lease payments	175.8
Less: Interest	23.1
Present value of lease liabilities	$ 152.7	$ 158.2

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Condensed Consolidated Balance Sheets (Parenthetical) $ in Millions	Mar. 28, 2020 € / shares	Mar. 28, 2020 USD ($) $ / shares shares	Dec. 31, 2019 € / shares	Dec. 31, 2019 USD ($) $ / shares shares
Statement of Financial Position [Abstract]
Allowance for credit losses | $		$ 7.1		$ 6.7
Stockholders' Equity:
Preferred shares, par value (in dollars per share) | $ / shares		$ 0.0001		$ 0.0001
Preferred shares, authorized		10,000,000		10,000,000
Ordinary shares, par value (in EUR per share) | € / shares	€ 0.001		€ 0.001
Ordinary shares, authorized		10,000,000,000		10,000,000,000

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Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
December 31, 2019		$ 4,116.7
Purchase accounting adjustments		0.0
Currency translation adjustments		(26.7)
March 28, 2020		4,090.0
CSCA
Goodwill [Roll Forward]
December 31, 2019		1,899.1
Purchase accounting adjustments		(10.8)
Currency translation adjustments		(5.7)
March 28, 2020		1,882.6
CSCI
Goodwill [Roll Forward]
December 31, 2019	[1]	1,203.7
Purchase accounting adjustments	[1]	10.8
Currency translation adjustments	[1]	(17.8)
March 28, 2020	[1]	1,196.7
Accumulated impairments		(868.4)	$ (868.4)
RX
Goodwill [Roll Forward]
December 31, 2019	[2]	1,013.9
Purchase accounting adjustments	[2]	0.0
Currency translation adjustments	[2]	(3.2)
March 28, 2020	[2]	1,010.7
Accumulated impairments		$ (109.2)	$ (109.2)

[1] We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and March 28, 2020.

[2] We had accumulated goodwill impairments of $109.2 million as of December 31, 2019 and March 28, 2020.

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Fair Value Measurements - Reconciliation of Level 3 Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Measured on a recurring basis | Level 3
Contingent Consideration
Beginning balance	$ 11.9	$ 15.3
Changes in value	1.1	1.2
Settlements and other adjustments	0.0	(4.1)
Ending balance	13.0	12.4
Royalty Pharma Contingent Milestone Payments
Royalty Pharma Contingent Milestone Payments
Payments received		(250.0)
Royalty Pharma Contingent Milestone Payments | Measured on a recurring basis | Level 3
Royalty Pharma Contingent Milestone Payments
Beginning balance	95.3	323.2
Payments received	0.0	(250.0)
Change in fair value		10.4
Ending balance	$ 96.9	$ 83.6

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Investments (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019	Dec. 31, 2019
Other (income) expense, net
Schedule of Equity Method Investments [Line Items]
Equity securities, fair value method, other expense (income)		$ 2.9	$ 6.1
Equity securities, equity method, other expense (income)		(0.7)	$ (0.7)
Prepaid expenses and other current assets
Schedule of Equity Method Investments [Line Items]
Equity securities, fair value method		3.7		$ 6.6
Other non-current assets
Schedule of Equity Method Investments [Line Items]
Equity securities, fair value method	[1]	2.3		2.3
Equity securities, equity method, other non-current assets		$ 18.5		$ 17.8

[1] (1) Measured at fair value using the Net Asset Value practical expedient.

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Subsequent Events (Details) - Oral Care Assets of High Ridge Brands - USD ($) $ in Millions		3 Months Ended
	Apr. 01, 2020	Mar. 28, 2020
Subsequent Event [Line Items]
General transaction costs		$ 1.5
CSCA | Subsequent Event
Subsequent Event [Line Items]
Purchase price paid	$ 113.0
Other non-current assets | CSCA
Subsequent Event [Line Items]
Deposit paid		$ 11.3

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Income Taxes (Details) € in Millions, $ in Millions			3 Months Ended		12 Months Ended
	Aug. 22, 2019 USD ($)	Aug. 15, 2017 USD ($)	Mar. 28, 2020 USD ($)	Mar. 30, 2019	Dec. 31, 2012 USD ($)	Dec. 31, 2011 USD ($)	Dec. 31, 2010 USD ($)	Dec. 31, 2009 USD ($)	Apr. 26, 2019 USD ($)	Nov. 29, 2018 EUR (€)
Income Tax Contingency [Line Items]
Effective income tax rate reconciliation, percent			7.20%	21.10%
Income tax examination, debts subject to limit of deductibility of interest expense	$ 7,500.0
Interest rate cap on debts for U.S. Federal tax purposes, as percent of Applicable Federal Rate	130.00%
Income tax examination, reduction in blended interest rate due to cap for U.S. Federal tax purposes	4.00%
IRS notice of proposed audit adjustment to reduce deductible interest expense for fiscal years 2014 and 2015	$ 480.0
Income tax examination, estimated increase to tax expense from audit adjustment to fiscal years 2014 and 2015, excluding interest and penalties	170.0
Income tax examination, estimate of additional tax expense for the period from June 28, 2015 through December 31, 2019, excluding interest and penalties	$ 200.0
Income tax examination, penalties and interest expense		$ 163.6			$ 24.7	$ 40.2	$ 61.5	$ 37.2
Cumulative deferred charge related to tax litigation			$ 101.8
Income tax overpayments applied to succeeding years			$ 29.7
Royalty conceded on all omeprazole sales as a percent of refund claims (percent)			24.00%
IRS notice of proposed adjustment amount from 2011,2012 and 2013 audit of Athena, including penalty									$ 843.0
IRS notice of proposed adjustment, penalty (percent)									40.00%
Revenue Commissioners, Ireland
Income Tax Contingency [Line Items]
Unsettled audit assessment from income tax examination | €										€ 1,636

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Goodwill and Intangible Assets

3 Months Ended

Mar. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):

	December 31, 2019		Purchase accounting adjustments			Currency translation adjustments			March 28, 2020
CSCA	$	1,899.1	$	(10.8	)	$	(5.7	)	$	1,882.6
CSCI(1)	1,203.7		10.8			(17.8		)	1,196.7
RX(2)	1,013.9		—			(3.2		)	1,010.7
Total goodwill	$	4,116.7	$	—		$	(26.7	)	$	4,090.0

(1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and March 28, 2020.

(2) We had accumulated goodwill impairments of $109.2 million as of December 31, 2019 and March 28, 2020.

Intangible Assets

Intangible assets and related accumulated amortization consisted of the following (in millions):

	March 28, 2020				December 31, 2019
	Gross		Accumulated Amortization		Gross		Accumulated Amortization
Indefinite-lived intangibles:
Trademarks, trade names, and brands	$	17.6	$	—	$	18.8	$	—
In-process research and development	38.6		—		50.0		—
Total indefinite-lived intangibles	$	56.2	$	—	$	68.8	$	—
Definite-lived intangibles:
Distribution and license agreements and supply agreements	$	133.5	$	82.6	$	126.7	$	81.1
Developed product technology, formulations, and product rights	1,393.5		770.2		1,392.8		755.3
Customer relationships and distribution networks	1,792.6		694.5		1,805.6		671.4
Trademarks, trade names, and brands	1,370.7		265.7		1,353.5		250.1
Non-compete agreements	6.4		6.0		6.5		6.0
Total definite-lived intangibles	$	4,696.7	$	1,819.0	$	4,685.1	$	1,763.9
Total intangible assets	$	4,752.9	$	1,819.0	$	4,753.9	$	1,763.9

We recorded amortization expense of $73.1 million and $75.4 million for the three months ended March 28, 2020, and March 30, 2019, respectively.

We recorded an impairment charge of $4.1 million on a certain IPR&D asset during the three months ended March 30, 2019 due to changes in projected development and regulatory timelines.

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 28, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Cross Currency Swaps

We entered into a cross-currency swap designated as a net investment hedge on August 15, 2019, to hedge the EUR currency exposure of our net investment in European operations. This agreement is a contract to exchange floating-rate Euro payments for floating-rate U.S. dollar payments. The payments are based on a notional basis of €450.0 million ($498.0 million) and settle quarterly.

Interest Rate Swaps

There were no active designated or non-designated interest rate swaps as of March 28, 2020 and December 31, 2019.

Foreign Currency Forwards

Foreign currency forward contracts were as follows (in millions):

	Notional Amount
	March 28, 2020		December 31, 2019
Israeli Shekel (ILS)	$	288.3	$	712.7
European Euro (EUR)	150.5		157.6
British Pound (GBP)	79.7		86.9
United States Dollar (USD)	55.9		92.4
Danish Krone (DKK)	52.4		51.7
Canadian Dollar (CAD)	27.4		41.3
Chinese Yuan (CNY)	14.6		20.9
Swedish Krona (SEK)	14.0		42.0
Mexican Peso (MPX)	12.5		9.7
Polish Zloty (PLZ)	7.8		21.5
Switzerland Franc (CHF)	4.4		4.1
Romanian New Leu (RON)	0.4		2.3
Norwegian Krone (NOK)	0.3		6.6
Other	4.7		7.5
Total	$	712.9	$	1,257.2

The maximum term of our forward currency exchange contracts is 18 months.

Effects of Derivatives on the Financial Statements

The below tables indicate the effects of all derivative instruments on the Condensed Consolidated Financial Statements. All amounts exclude income tax effects.

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

		Asset Derivatives
		Fair Value
	Balance Sheet Location	March 28, 2020		December 31, 2019
Designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	5.3	$	1.0
Cross-currency swap	Prepaid expenses and other current assets	11.4		26.3
Total designated derivatives		$	16.7	$	27.3
Non-designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	5.8	$	3.3

		Liability Derivatives
		Fair Value
	Balance Sheet Location	March 28, 2020		December 31, 2019
Designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	10.9	$	4.7
Non-designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	2.8	$	3.7

The following tables summarize the effect of derivative instruments designated as hedging instruments in Accumulated Other Comprehensive Income ("AOCI") (in millions):

	Three Months Ended
	March 28, 2020
Instrument	Amount of Gain/(Loss) Recorded in OCI(1)			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements	$	—		Interest expense, net	$	(0.4	)	Interest expense, net	$	—
Foreign currency forward contracts	7.0			Net sales	(0.4		)	Net sales	—
				Cost of sales	(0.6		)	Cost of sales	0.4
	$	7.0			$	(1.4	)		$	0.4
Net investment hedges:
Cross-currency swap	$	(15.0	)					Interest expense, net	$	2.8

(1) Net gain of $5.1 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

	Three Months Ended
	March 30, 2019
Instrument	Amount of Gain/(Loss) Recorded in OCI			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements	$	—		Interest expense, net	$	(0.4	)	Interest expense, net	$	—
Foreign currency forward contracts	(1.0		)	Net sales	0.2			Net sales	(0.1		)
				Cost of sales	(1.3		)	Cost of sales	(1.1		)
	$	(1.0	)		$	(1.5	)		$	(1.2	)

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

		Three Months Ended
Non-Designated Derivatives	Income Statement Location	March 28, 2020		March 30, 2019
Foreign currency forward contracts	Other (income) expense, net	$	10.4	$	(8.8	)
	Interest expense, net	1.7		0.4
		$	12.1	$	(8.4	)

The classification and amount of gain/(loss) recognized in earnings on fair value and hedging relationships were as follows (in millions):

	Three Months Ended
	March 28, 2020
	Net Sales			Cost of Sales			Interest Expense, net			Other (Income) Expense, net
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	$	1,341.0		$	857.8		$	30.2		$	2.4
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	(0.4	)	$	(0.6	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	—		$	0.4		$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—		$	—		$	(0.4	)	$	—

	Three Months Ended
	March 30, 2019
	Net Sales			Cost of Sales			Interest Expense, net			Other (Income) Expense, net
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	$	1,174.5		$	725.7		$	28.6		$	3.2
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	0.2		$	(1.3	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.1	)	$	(1.1	)	$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—		$	—		$	(0.4	)	$	—

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Income Taxes (Tables)

3 Months Ended

Mar. 28, 2020

Income Tax Disclosure [Abstract]

Schedule of effective income tax rate reconciliation

The effective tax rates were as follows:

Three Months Ended
March 28, 2020		March 30, 2019
7.2	%	21.1	%

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Leases (Tables)

3 Months Ended

Mar. 28, 2020

Leases [Abstract]

Balance Sheet Location of Lease Assets and Liabilities

The balance sheet locations of our lease assets and liabilities were as follows (in millions):

Assets	Balance Sheet Location	March 28, 2020		December 31, 2019
Operating	Operating lease assets	$	124.0	$	129.9
Finance	Other non-current assets	27.9		27.6
Total		$	151.9	$	157.5

Liabilities	Balance Sheet Location	March 28, 2020		December 31, 2019
Current
Operating	Other accrued liabilities	$	30.9	$	32.0
Finance	Current indebtedness	5.7		3.4
Non-Current
Operating	Other non-current liabilities	96.8		101.7
Finance	Long-term debt, less current portion	19.3		21.1
Total		$	152.7	$	158.2

The below table shows our lease assets and liabilities by reporting segment (in millions):

	Assets								Liabilities
	Operating				Financing				Operating				Financing
	March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019
CSCA	$	21.4	$	22.4	$	16.4	$	16.8	$	21.5	$	22.8	$	16.4	$	16.6
CSCI	39.3		41.6		5.7		5.8		40.3		42.4		2.7		2.9
RX	33.5		35.1		0.7		0.8		34.7		36.3		0.7		0.8
Unallocated	29.8		30.8		5.1		4.2		31.2		32.2		5.2		4.2
Total	$	124.0	$	129.9	$	27.9	$	27.6	$	127.7	$	133.7	$	25.0	$	24.5

Lease Expense

Lease expense was as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Operating leases(1)	$	11.4	$	12.0
Finance leases
Amortization	$	1.1	$	0.7
Interest	0.2		0.1
Total finance leases	$	1.3	$	0.8

(1) Includes short-term leases and variable lease costs, which are immaterial.

Finance Lease Maturity

The annual future maturities of our leases as of March 28, 2020 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2020	$	27.4	$	3.4	$	30.8
2021	28.2		5.8		34.0
2022	21.0		3.2		24.2
2023	15.6		1.8		17.4
2024	12.3		1.4		13.7
After 2024	41.5		14.2		55.7
Total lease payments	146.0		29.8		175.8
Less: Interest	18.3		4.8		23.1
Present value of lease liabilities	$	127.7	$	25.0	$	152.7

Operating Lease Liability Maturity

The annual future maturities of our leases as of March 28, 2020 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2020	$	27.4	$	3.4	$	30.8
2021	28.2		5.8		34.0
2022	21.0		3.2		24.2
2023	15.6		1.8		17.4
2024	12.3		1.4		13.7
After 2024	41.5		14.2		55.7
Total lease payments	146.0		29.8		175.8
Less: Interest	18.3		4.8		23.1
Present value of lease liabilities	$	127.7	$	25.0	$	152.7

Weighted Average Lease Terms and Discount Rates

Our weighted average lease terms and discount rates are as follows:

	March 28, 2020
Weighted-average remaining lease term (in years)
Operating leases	6.50
Finance leases	9.90
Weighted-average discount rate
Operating leases	4.06	%
Finance leases	3.41	%

Leease Cash Flow Classifications

Our lease cash flow classifications are as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	10.7	$	11.7
Operating cash flows for finance leases	$	0.2	$	0.1
Financing cash flows for finance leases	$	1.0	$	0.7
Leased assets obtained in exchange for new finance lease liabilities	$	1.5	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	5.5	$	4.7

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Inventories (Tables)

3 Months Ended

Mar. 28, 2020

Inventory Disclosure [Abstract]

Major Components of Inventory

Major components of inventory were as follows (in millions):

 

	March 28, 2020		December 31, 2019
Finished goods	$	485.8	$	530.3
Work in process	188.8		186.9
Raw materials	256.2		250.1
Total inventories	$	930.8	$	967.3

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Derivative Instruments and Hedging Activities - Foreign Currency Forward Contracts (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 28, 2020 USD ($)	Mar. 28, 2020 EUR (€)	Dec. 31, 2019 USD ($)
Cross currency swaps
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	$ 498.0	€ 450.0
Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	$ 712.9		$ 1,257.2
Maximum remaining maturity of foreign currency derivatives	18 months
British Pound (GBP) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	$ 288.3		712.7
European Euro (EUR) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	150.5		157.6
British Pound (GBP) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	79.7		86.9
United States Dollar (USD) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	55.9		92.4
Danish Krone (DKK) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	52.4		51.7
Canadian Dollar (CAD) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	27.4		41.3
Chinese Yuan (CNY) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	14.6		20.9
Swedish Krona (SEK) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	14.0		42.0
Mexican Peso (MPX) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	12.5		9.7
Polish Zloty (PLZ) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	7.8		21.5
Switzerland Franc (CHF) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	4.4		4.1
Romanian New Leu (RON) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	0.4		2.3
Norwegian Krone (NOK) | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	0.3		6.6
Other | Foreign currency forward contracts
Foreign Currency Fair Value Hedge Derivative [Line Items]
Notional amount of derivatives	$ 4.7		$ 7.5

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Goodwill and Intangible Assets - Intangible categories (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Dec. 31, 2019
Finite And Indefinite Lived Assets By Major Class [Line Items]
Indefinite-lived intangibles:	$ 56.2		$ 68.8
Gross	4,696.7		4,685.1
Accumulated Amortization	1,819.0		1,763.9
Total other intangible assets	4,752.9		4,753.9
Intangible assets amortization expense	73.1	$ 75.4
Distribution and license agreements and supply agreements
Finite And Indefinite Lived Assets By Major Class [Line Items]
Gross	133.5		126.7
Accumulated Amortization	82.6		81.1
Developed product technology, formulations, and product rights
Finite And Indefinite Lived Assets By Major Class [Line Items]
Gross	1,393.5		1,392.8
Accumulated Amortization	770.2		755.3
Customer relationships and distribution networks
Finite And Indefinite Lived Assets By Major Class [Line Items]
Gross	1,792.6		1,805.6
Accumulated Amortization	694.5		671.4
Trade name and trademark
Finite And Indefinite Lived Assets By Major Class [Line Items]
Gross	1,370.7		1,353.5
Accumulated Amortization	265.7		250.1
Non-compete agreements
Finite And Indefinite Lived Assets By Major Class [Line Items]
Gross	6.4		6.5
Accumulated Amortization	6.0		6.0
Trademarks, trade names, and brands
Finite And Indefinite Lived Assets By Major Class [Line Items]
Indefinite-lived intangibles:	17.6		18.8
In-process research and development
Finite And Indefinite Lived Assets By Major Class [Line Items]
Indefinite-lived intangibles:	$ 38.6		$ 50.0
Impairment of indefinite lived intangible assets		$ 4.1

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Fair Value Measurements - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfers among level 1, 2, and 3	$ 0.0			$ 0.0
Income recognized from change is asset	1.6	$ 10.4
Royalty Pharma Contingent Milestone Payments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net sales included in calculation for milestone payment				0.0	$ 337.5
Payments received		250.0
Royalty Pharma Contingent Milestone Payments | Measured on a recurring basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) in fair value of milestone payment		10.4
Estimated fair valued contingent milestone payment	96.9	83.6		$ 95.3	$ 323.2
Payments received	0.0	$ 250.0
Royalty Pharma 2020 Contingent Milestone Payments | Measured on a recurring basis | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Increase (decrease) in fair value of milestone payment	1.6
Estimated fair valued contingent milestone payment	$ 96.9
Royalty Pharma
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Volatility	35.00%	30.00%
Rate of return	7.29%	8.02%
Scenario, Forecast
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Royalty Pharma contingent payment sales threshold			$ 400.0
Scenario, Forecast | Royalty Pharma Contingent Milestone Payments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Royalty Pharma contingent payment sales threshold			400.0
Net sales threshold to trigger milestone payment			351.0
Income recognized from change is asset			$ 303.1

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Segment Information (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Total Assets		$ 11,400.7		$ 11,301.4
Net sales	[1]	1,341.0	$ 1,174.5
Operating Income (Loss)		145.7	102.3
Intangible Asset Amortization		73.1	75.4
CSCA
Segment Reporting Information [Line Items]
Total Assets		4,179.2		3,990.2
Net sales	[2]	700.6	581.8
Operating Income (Loss)		124.6	94.2
Intangible Asset Amortization		13.6	10.1
CSCI
Segment Reporting Information [Line Items]
Total Assets		4,653.1		4,682.7
Net sales		382.7	350.8
Operating Income (Loss)		25.0	8.1
Intangible Asset Amortization		38.3	44.1
RX
Segment Reporting Information [Line Items]
Total Assets		2,568.4		$ 2,628.5
Net sales		257.7	241.9
Operating Income (Loss)		51.7	60.6
Intangible Asset Amortization		21.2	21.2
Unallocated
Segment Reporting Information [Line Items]
Net sales		0.0	0.0
Operating Income (Loss)		(55.6)	(60.6)
Intangible Asset Amortization		$ 0.0	$ 0.0

[1] Derived from the location of the entity that sells to a third party.

[2] Includes net sales from our OTC contract manufacturing business.

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Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	$ 5,803.8	$ 5,668.0
OCI before reclassifications	(102.1)
Amounts reclassified from AOCI	(1.4)
Other comprehensive income (loss), net of tax	(103.5)	(15.6)
Balance, ending	5,786.4	5,700.6
Fair Value of Derivative Financial Instruments, net of tax
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	12.7
OCI before reclassifications	(8.0)
Amounts reclassified from AOCI	(1.4)
Other comprehensive income (loss), net of tax	(9.4)
Balance, ending	3.3
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	132.9
OCI before reclassifications	(92.2)
Amounts reclassified from AOCI	0.0
Other comprehensive income (loss), net of tax	(92.2)
Balance, ending	40.7
Post-Retirement and Pension Liability Adjustments, net of tax
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	(6.2)
OCI before reclassifications	(1.9)
Amounts reclassified from AOCI	0.0
Other comprehensive income (loss), net of tax	(1.9)
Balance, ending	(8.1)
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income [Roll Forward]
Balance, beginning	139.4	84.6
Other comprehensive income (loss), net of tax	(103.5)	(15.6)
Balance, ending	$ 35.9	$ 69.0

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Inventories

3 Months Ended

Mar. 28, 2020

Inventory Disclosure [Abstract]

Inventories

INVENTORIES

Major components of inventory were as follows (in millions):

 

	March 28, 2020		December 31, 2019
Finished goods	$	485.8	$	530.3
Work in process	188.8		186.9
Raw materials	256.2		250.1
Total inventories	$	930.8	$	967.3

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Leases

3 Months Ended

Mar. 28, 2020

Leases [Abstract]

Leases

LEASES

The balance sheet locations of our lease assets and liabilities were as follows (in millions):

Assets	Balance Sheet Location	March 28, 2020		December 31, 2019
Operating	Operating lease assets	$	124.0	$	129.9
Finance	Other non-current assets	27.9		27.6
Total		$	151.9	$	157.5

Liabilities	Balance Sheet Location	March 28, 2020		December 31, 2019
Current
Operating	Other accrued liabilities	$	30.9	$	32.0
Finance	Current indebtedness	5.7		3.4
Non-Current
Operating	Other non-current liabilities	96.8		101.7
Finance	Long-term debt, less current portion	19.3		21.1
Total		$	152.7	$	158.2

The below table shows our lease assets and liabilities by reporting segment (in millions):

	Assets								Liabilities
	Operating				Financing				Operating				Financing
	March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019
CSCA	$	21.4	$	22.4	$	16.4	$	16.8	$	21.5	$	22.8	$	16.4	$	16.6
CSCI	39.3		41.6		5.7		5.8		40.3		42.4		2.7		2.9
RX	33.5		35.1		0.7		0.8		34.7		36.3		0.7		0.8
Unallocated	29.8		30.8		5.1		4.2		31.2		32.2		5.2		4.2
Total	$	124.0	$	129.9	$	27.9	$	27.6	$	127.7	$	133.7	$	25.0	$	24.5

Lease expense was as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Operating leases(1)	$	11.4	$	12.0
Finance leases
Amortization	$	1.1	$	0.7
Interest	0.2		0.1
Total finance leases	$	1.3	$	0.8

(1) Includes short-term leases and variable lease costs, which are immaterial.

The annual future maturities of our leases as of March 28, 2020 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2020	$	27.4	$	3.4	$	30.8
2021	28.2		5.8		34.0
2022	21.0		3.2		24.2
2023	15.6		1.8		17.4
2024	12.3		1.4		13.7
After 2024	41.5		14.2		55.7
Total lease payments	146.0		29.8		175.8
Less: Interest	18.3		4.8		23.1
Present value of lease liabilities	$	127.7	$	25.0	$	152.7

Our weighted average lease terms and discount rates are as follows:

	March 28, 2020
Weighted-average remaining lease term (in years)
Operating leases	6.50
Finance leases	9.90
Weighted-average discount rate
Operating leases	4.06	%
Finance leases	3.41	%

Our lease cash flow classifications are as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	10.7	$	11.7
Operating cash flows for finance leases	$	0.2	$	0.1
Financing cash flows for finance leases	$	1.0	$	0.7
Leased assets obtained in exchange for new finance lease liabilities	$	1.5	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	5.5	$	4.7

Leases

LEASES

The balance sheet locations of our lease assets and liabilities were as follows (in millions):

Assets	Balance Sheet Location	March 28, 2020		December 31, 2019
Operating	Operating lease assets	$	124.0	$	129.9
Finance	Other non-current assets	27.9		27.6
Total		$	151.9	$	157.5

Liabilities	Balance Sheet Location	March 28, 2020		December 31, 2019
Current
Operating	Other accrued liabilities	$	30.9	$	32.0
Finance	Current indebtedness	5.7		3.4
Non-Current
Operating	Other non-current liabilities	96.8		101.7
Finance	Long-term debt, less current portion	19.3		21.1
Total		$	152.7	$	158.2

The below table shows our lease assets and liabilities by reporting segment (in millions):

	Assets								Liabilities
	Operating				Financing				Operating				Financing
	March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019		March 28, 2020		December 31, 2019
CSCA	$	21.4	$	22.4	$	16.4	$	16.8	$	21.5	$	22.8	$	16.4	$	16.6
CSCI	39.3		41.6		5.7		5.8		40.3		42.4		2.7		2.9
RX	33.5		35.1		0.7		0.8		34.7		36.3		0.7		0.8
Unallocated	29.8		30.8		5.1		4.2		31.2		32.2		5.2		4.2
Total	$	124.0	$	129.9	$	27.9	$	27.6	$	127.7	$	133.7	$	25.0	$	24.5

Lease expense was as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Operating leases(1)	$	11.4	$	12.0
Finance leases
Amortization	$	1.1	$	0.7
Interest	0.2		0.1
Total finance leases	$	1.3	$	0.8

(1) Includes short-term leases and variable lease costs, which are immaterial.

The annual future maturities of our leases as of March 28, 2020 are as follows (in millions):

	Operating Leases		Finance Leases		Total
2020	$	27.4	$	3.4	$	30.8
2021	28.2		5.8		34.0
2022	21.0		3.2		24.2
2023	15.6		1.8		17.4
2024	12.3		1.4		13.7
After 2024	41.5		14.2		55.7
Total lease payments	146.0		29.8		175.8
Less: Interest	18.3		4.8		23.1
Present value of lease liabilities	$	127.7	$	25.0	$	152.7

Our weighted average lease terms and discount rates are as follows:

	March 28, 2020
Weighted-average remaining lease term (in years)
Operating leases	6.50
Finance leases	9.90
Weighted-average discount rate
Operating leases	4.06	%
Finance leases	3.41	%

Our lease cash flow classifications are as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases	$	10.7	$	11.7
Operating cash flows for finance leases	$	0.2	$	0.1
Financing cash flows for finance leases	$	1.0	$	0.7
Leased assets obtained in exchange for new finance lease liabilities	$	1.5	$	—
Leased assets obtained in exchange for new operating lease liabilities	$	5.5	$	4.7

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 28, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Foreign Currency Forward Contracts

Foreign currency forward contracts were as follows (in millions):

	Notional Amount
	March 28, 2020		December 31, 2019
Israeli Shekel (ILS)	$	288.3	$	712.7
European Euro (EUR)	150.5		157.6
British Pound (GBP)	79.7		86.9
United States Dollar (USD)	55.9		92.4
Danish Krone (DKK)	52.4		51.7
Canadian Dollar (CAD)	27.4		41.3
Chinese Yuan (CNY)	14.6		20.9
Swedish Krona (SEK)	14.0		42.0
Mexican Peso (MPX)	12.5		9.7
Polish Zloty (PLZ)	7.8		21.5
Switzerland Franc (CHF)	4.4		4.1
Romanian New Leu (RON)	0.4		2.3
Norwegian Krone (NOK)	0.3		6.6
Other	4.7		7.5
Total	$	712.9	$	1,257.2

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

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

		Asset Derivatives
		Fair Value
	Balance Sheet Location	March 28, 2020		December 31, 2019
Designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	5.3	$	1.0
Cross-currency swap	Prepaid expenses and other current assets	11.4		26.3
Total designated derivatives		$	16.7	$	27.3
Non-designated derivatives:
Foreign currency forward contracts	Prepaid expenses and other current assets	$	5.8	$	3.3

		Liability Derivatives
		Fair Value
	Balance Sheet Location	March 28, 2020		December 31, 2019
Designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	10.9	$	4.7
Non-designated derivatives:
Foreign currency forward contracts	Other accrued liabilities	$	2.8	$	3.7

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 Accumulated Other Comprehensive Income ("AOCI") (in millions):

	Three Months Ended
	March 28, 2020
Instrument	Amount of Gain/(Loss) Recorded in OCI(1)			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements	$	—		Interest expense, net	$	(0.4	)	Interest expense, net	$	—
Foreign currency forward contracts	7.0			Net sales	(0.4		)	Net sales	—
				Cost of sales	(0.6		)	Cost of sales	0.4
	$	7.0			$	(1.4	)		$	0.4
Net investment hedges:
Cross-currency swap	$	(15.0	)					Interest expense, net	$	2.8

(1) Net gain of $5.1 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

	Three Months Ended
	March 30, 2019
Instrument	Amount of Gain/(Loss) Recorded in OCI			Classification of Gain/(Loss) Reclassified from AOCI into Earnings	Amount of Gain/(Loss) Reclassified from AOCI into Earnings			Classification of Gain/(Loss) Recognized into Earnings Related to Amounts Excluded from Effectiveness Testing	Amount of Gain/(Loss) Recognized in Earnings on Derivatives Related to Amounts Excluded from Effectiveness Testing
Cash flow hedges:
Interest rate swap agreements	$	—		Interest expense, net	$	(0.4	)	Interest expense, net	$	—
Foreign currency forward contracts	(1.0		)	Net sales	0.2			Net sales	(0.1		)
				Cost of sales	(1.3		)	Cost of sales	(1.1		)
	$	(1.0	)		$	(1.5	)		$	(1.2	)

Amount of Gain/(Loss) Recognized against Earnings

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

		Three Months Ended
Non-Designated Derivatives	Income Statement Location	March 28, 2020		March 30, 2019
Foreign currency forward contracts	Other (income) expense, net	$	10.4	$	(8.8	)
	Interest expense, net	1.7		0.4
		$	12.1	$	(8.4	)

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 on fair value and hedging relationships were as follows (in millions):

	Three Months Ended
	March 28, 2020
	Net Sales			Cost of Sales			Interest Expense, net			Other (Income) Expense, net
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	$	1,341.0		$	857.8		$	30.2		$	2.4
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	(0.4	)	$	(0.6	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	—		$	0.4		$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—		$	—		$	(0.4	)	$	—

	Three Months Ended
	March 30, 2019
	Net Sales			Cost of Sales			Interest Expense, net			Other (Income) Expense, net
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	$	1,174.5		$	725.7		$	28.6		$	3.2
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings	$	0.2		$	(1.3	)	$	—		$	—
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach	$	(0.1	)	$	(1.1	)	$	—		$	—
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings	$	—		$	—		$	(0.4	)	$	—

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 28, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

Changes in the carrying amount of goodwill, by reportable segment, were as follows (in millions):

	December 31, 2019		Purchase accounting adjustments			Currency translation adjustments			March 28, 2020
CSCA	$	1,899.1	$	(10.8	)	$	(5.7	)	$	1,882.6
CSCI(1)	1,203.7		10.8			(17.8		)	1,196.7
RX(2)	1,013.9		—			(3.2		)	1,010.7
Total goodwill	$	4,116.7	$	—		$	(26.7	)	$	4,090.0

(1) We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and March 28, 2020.

(2) We had accumulated goodwill impairments of $109.2 million as of December 31, 2019 and March 28, 2020.

Schedule of Finite and Indefinite-lived Intangible Assets

Intangible assets and related accumulated amortization consisted of the following (in millions):

	March 28, 2020				December 31, 2019
	Gross		Accumulated Amortization		Gross		Accumulated Amortization
Indefinite-lived intangibles:
Trademarks, trade names, and brands	$	17.6	$	—	$	18.8	$	—
In-process research and development	38.6		—		50.0		—
Total indefinite-lived intangibles	$	56.2	$	—	$	68.8	$	—
Definite-lived intangibles:
Distribution and license agreements and supply agreements	$	133.5	$	82.6	$	126.7	$	81.1
Developed product technology, formulations, and product rights	1,393.5		770.2		1,392.8		755.3
Customer relationships and distribution networks	1,792.6		694.5		1,805.6		671.4
Trademarks, trade names, and brands	1,370.7		265.7		1,353.5		250.1
Non-compete agreements	6.4		6.0		6.5		6.0
Total definite-lived intangibles	$	4,696.7	$	1,819.0	$	4,685.1	$	1,763.9
Total intangible assets	$	4,752.9	$	1,819.0	$	4,753.9	$	1,763.9

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Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Mar. 28, 2020

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in our AOCI balances, net of tax were as follows (in millions):

	Fair Value of Derivative Financial Instruments, net of tax			Foreign Currency Translation Adjustments			Post-Retirement and Pension Liability Adjustments, net of tax			Total AOCI
Balance at December 31, 2019	$	12.7		$	132.9		$	(6.2	)	$	139.4
OCI before reclassifications	(8.0		)	(92.2		)	(1.9		)	(102.1		)
Amounts reclassified from AOCI	(1.4		)	—			—			(1.4		)
Other comprehensive income (loss)	$	(9.4	)	$	(92.2	)	$	(1.9	)	$	(103.5	)
Balance at March 28, 2020	$	3.3		$	40.7		$	(8.1	)	$	35.9

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Acquisitions (Tables)

3 Months Ended

Mar. 28, 2020

Business Combinations [Abstract]

Schedule of Assets Acquired and Liabilities Assumed

The following table summarizes the consideration paid for Ranir and the provisional amounts of the assets acquired and liabilities assumed (in millions):

	Ranir
Purchase price paid	$	759.2
Assets acquired:
Cash and cash equivalents	$	11.5
Accounts receivable	40.6
Inventories	59.0
Prepaid expenses and other current assets	4.0
Property, plant and equipment, net	40.8
Operating lease assets	3.7
Goodwill	291.1
Definite-lived intangibles:
Developed product technology, formulations, and product rights	$	48.6
Customer relationships and distribution networks	260.0
Trademarks, trade names, and brands	41.0
Indefinite-lived intangibles:
In-process research and development	39.7
Total intangible assets	$	389.3
Other non-current assets	2.7
Total assets	$	842.7
Liabilities assumed:
Accounts payable	$	17.6
Other accrued liabilities	7.7
Payroll and related taxes	5.5
Accrued customer programs	5.7
Deferred income taxes	44.2
Other non-current liabilities	2.8
Total liabilities	$	83.5
Net assets acquired	$	759.2

Business Acquisition, Pro Forma Information [Table Text Block]

The following table presents unaudited pro forma information as if the Ranir acquisition had occurred on January 1, 2018 and had been combined with the results reported in our Condensed Consolidated Statements of Operations for all periods presented (in millions):

	Three Months Ended
(Unaudited)	March 30, 2019
Net sales	$	1,248.4
Net income	$	70.7

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Income Taxes

3 Months Ended

Mar. 28, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The effective tax rates were as follows:

Three Months Ended
March 28, 2020		March 30, 2019
7.2	%	21.1	%

The effective tax rate for the three months ended March 28, 2020 decreased compared to the prior period primarily due to additional interest and depreciation deductions provided for in the U.S. Coronavirus Aid, Relief, and Economic Security ("CARES") Act.

IRS Audit of Fiscal Years Ended June 29, 2013, June 28, 2014, and June 27, 2015    

On August 22, 2019, we received a draft Notice of Proposed Adjustment (“NOPA”) from the IRS with respect to our fiscal tax years ended June 28, 2014 and June 27, 2015 relating to the deductibility of interest on $7.5 billion in debts owed to Perrigo Company plc by Perrigo Company, a Michigan corporation and wholly-owned indirect subsidiary of Perrigo Company, plc. The debts were incurred in connection with the Elan merger transaction in 2013. The draft NOPA would cap the interest rate on the debts for U.S. federal tax purposes at 130.0% of the Applicable Federal Rate (a blended rate reduction of 4.0% per annum from the rates agreed to by the parties), on the stated ground that the loans were not negotiated on an arms’-length basis. As a result of the proposed interest rate reduction, the draft NOPA proposes a reduction in gross interest expense of approximately $480.0 million for fiscal years 2014 and 2015. If the IRS were to prevail in its proposed adjustment, we estimate an increase in tax expense for such fiscal years of approximately $170.0 million, excluding interest and penalties. In addition, we would expect the IRS to seek similar adjustments for the period from June 28, 2015 through December 31, 2019. If those further adjustments were sustained, based on our preliminary calculations and subject to further analysis, our current best estimate is that the additional tax expense would not exceed $200.0 million, excluding interest and penalties, for the period June 28, 2015 through December 31, 2019. We do not expect any similar adjustments beyond December 31, 2019 as proposed regulations, issued under section 267A of the Internal Revenue Code, would eliminate the deductibility of interest on this debt. We strongly disagree with the IRS position and will pursue all available administrative and judicial remedies. No payment of any amount related to the proposed adjustments is required to be made, if at all, until all applicable proceedings have been completed.

Following receipt of the draft NOPA, Perrigo provided the IRS with a detailed written response on September 20, 2019. That submission included an analysis by external advisors that supported the original interest rates as being consistent with arms’-length rates for comparable debt and explained why the exam team’s analyses and conclusions were both factually and legally misguided. Based on discussions with the IRS, we had believed that the IRS staff would take our submission into account and meet with us to discuss whether this issue could be resolved at the examination level. However, in the weeks following such discussions, IRS staff advised that they would not respond in detail to our September submission or negotiate the interest rate issue prior to issuing a final NOPA consistent with the draft NOPA. Accordingly, we currently expect that we will receive a final NOPA regarding this matter that proposes substantially the same adjustments described in the draft NOPA.

IRS Audit of Fiscal Years ended June 27, 2009, June 26, 2010, June 25, 2011, and June 30, 2012    

On August 15, 2017, we filed a complaint in the United States District Court for the Western District of Michigan to recover $163.6 million of Federal income tax, penalties, and interest assessed and collected by the IRS, plus statutory interest thereon from the dates of payment, for the fiscal tax years ended June 27, 2009, June 26, 2010, June 25, 2011, and June 30, 2012 (the “2009 tax year,” “2010 tax year,” “2011 tax year,” and “2012 tax year,” respectively). In response to our complaint, the United States District Court for Western District of Michigan scheduled a trial date for late May 2020 which has been delayed due to the ongoing COVID-19 pandemic. The IRS audits of those years culminated in the issuances of two statutory notices of deficiency: (1) on August 27, 2014 for the 2009 and 2010 tax years and (2) on April 20, 2017 for the 2011 and 2012 tax years. The statutory notices of deficiency both included un-agreed income adjustments related principally to transfer pricing adjustments regarding the purchase, distribution, and sale of store-brand OTC pharmaceutical products in the United States. In addition, the statutory notice of deficiency for the 2011 and 2012 tax years included the capitalization of certain expenses that

were deducted when paid or incurred in defending against certain patent infringement lawsuits. We fully paid the assessed amounts of tax, interest, and penalties set forth in the statutory notices and filed timely claims for refund on June 11, 2015 and June 7, 2017 for the 2009-2010 tax years and 2011-2012 tax years, respectively. Upon the disallowance of such refund claims, we timely filed the above complaint, which seeks refunds of tax, interest, and penalties of $37.2 million for the 2009 tax year, $61.5 million for the 2010 tax year, $40.2 million for the 2011 tax year, and $24.7 million for the 2012 tax year, for a total of $163.6 million. The amounts sought in the complaint for the 2009 and 2010 tax years were recorded as deferred charges in Other non-current assets on our balance sheet during the three months ended March 28, 2015, and the amounts sought in the complaint for the 2011 and 2012 tax years were recorded as deferred charges in Other non-current assets on our balance sheet during the three months ended July 1, 2017. The total cumulative deferred charge that the company is seeking to receive in this litigation is approximately $101.8 million, which reflects (i) a deduction of $29.7 million from the total reflected above due to overpayments credited to succeeding years and (ii) the impact of a previously conceded royalty due to Perrigo U.S. on all omeprazole sales that equates to 24.0% of the above refund claims. That 24.0% concession would also apply to any omeprazole adjustments that may be asserted by the IRS for future years.

IRS Audit of Fiscal Years Ended December 31, 2011, December 31, 2012, and December 31, 2013    

On April 26, 2019, we received a revised NOPA from the IRS regarding transfer pricing positions related to the IRS audit of Athena for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. The NOPA carries forward the IRS's theory from its 2017 draft NOPA that when Elan took over the future funding of Athena's in-process research and development after acquiring Athena in 1996, Elan should have paid a substantially higher royalty rate for the right to exploit Athena’s intellectual property, rather than rates based on transfer pricing documentation prepared by Elan's external tax advisors. The NOPA proposes a payment of $843.0 million, which represents additional tax and a 40.0% penalty. This amount excludes consideration of offsetting tax attributes and potentially material interest. We strongly disagree with the IRS position and will pursue all available administrative and judicial remedies, including those available under the U.S. - Ireland Income Tax Treaty to alleviate double taxation. Accordingly, on April 14, 2020, we filed a request for Competent Authority Assistance with the IRS. No payment of the additional amounts is required until the matter is resolved administratively, judicially, or through treaty negotiation.

On December 22, 2016, we received a NOPA from the IRS regarding the deductibility of litigation costs related to the IRS audit of Athena for the years ended December 31, 2011, December 31, 2012, and December 31, 2013. We strongly disagree with the IRS’s position asserted in the NOPA and are contesting it.

Irish Revenue Audit of Fiscal Years Ended December 31, 2012 and December 31, 2013

On October 30, 2018, we received an audit finding letter from the Irish Office of the Revenue Commissioners (“Irish Revenue”) for the years ended December 31, 2012 and December 31, 2013. The audit finding letter relates to the tax treatment of the 2013 sale of the Tysabri^® intellectual property and other assets related to Tysabri^® to Biogen Idec from Elan Pharma. The consideration paid by Biogen to Elan Pharma took the form of an upfront payment and future contingent royalty payments. Irish Revenue issued a Notice of Amended Assessment (“NoA”) on November 29, 2018 which assesses an Irish corporation tax liability against Elan Pharma in the amount of €1,636 million, not including interest or any applicable penalties.

We strongly disagree with this assessment and believe that the NoA is without merit and incorrect as a matter of law. We filed an appeal of the NoA on December 27, 2018 and will pursue all available administrative and judicial avenues as may be necessary or appropriate. In connection with that, Elan Pharma was granted leave by the Irish High Court on February 25, 2019 to seek judicial review of the issuance of the NoA by Irish Revenue. The judicial review filing is based on our belief that Elan Pharma's legitimate expectations as a taxpayer have been breached, not on the merits of the NoA itself. The High Court scheduled a hearing in this judicial review proceeding for April 2020 which has been delayed due to the ongoing COVID-19 pandemic. If we are ultimately successful in the judicial review proceedings, the NoA will be invalidated and Irish Revenue will not be able to re-issue the NoA. The proceedings before the Tax Appeals Commission have been stayed until a decision on the judicial review application has been made. If for any reason the judicial review proceedings are ultimately unsuccessful in establishing that Irish Revenue's issuance of the NoA breaches our legitimate expectations, Elan Pharma will reactivate its appeal to challenge the merits of the NoA before the Tax Appeals Commission.

The Israel Tax Authority is auditing our fiscal year ended June 27, 2015, and calendar years ended December 31, 2015, December 31, 2016 and December 31, 2017.

Although we believe that our tax estimates are reasonable and that we prepare our tax filings in accordance with all applicable tax laws, the final determination with respect to any tax audit and any related litigation could be materially different from our estimates or from our historical income tax provisions and accruals. The results of an audit or litigation could have a material effect on operating results and/or cash flows in the periods for which that determination is made. In addition, future period earnings may be adversely impacted by litigation costs, settlements, penalties, and/or interest assessments.

Based on the final resolution of tax examinations, judicial or administrative proceedings, changes in facts or law, expirations of statute of limitations in specific jurisdictions or other resolutions of, or changes in, tax positions - one or more of which may occur within the next twelve months - it is reasonably possible that unrecognized tax benefits for certain tax positions taken on previously filed tax returns may change materially from those recorded as of March 28, 2020. However, we are not able to estimate a reasonably possible range of how these events may impact our unrecognized tax benefits in the next twelve months.

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Subsequent Events

3 Months Ended

Mar. 28, 2020

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Acquisition of the Oral Care Assets of High Ridge Brands

On April 1, 2020, we completed the acquisition of the oral care assets of High Ridge Brands for total agreed purchase consideration of $113.0 million, subject to customary post-closing adjustments, including a working capital settlement which may raise or lower the purchase price. The consideration includes an $11.3 million deposit we paid during the three months ended March 28, 2020, which is recorded on the Condensed Consolidated Balance Sheets within Other non-current assets. This acquisition includes the leading children’s oral care value brand, Firefly^®, in addition to the REACH^® and Dr. Fresh^® brands. The U.S. operations, which represents a significant portion of the business, will be reported in our CSCA segment and the remaining non-U.S. operations will be reported in our CSCI segment.

During the three months ended March 28, 2020, in connection with the acquisition, we incurred $1.5 million of general transaction costs (legal, banking and other professional fees). The amounts were recorded in Administration expenses within the CSCA segment.

We are in the process of gathering significant relevant information needed to complete the valuation for the assets acquired and liabilities assumed. As a result, the initial accounting for the acquisition accounting is incomplete. The provisional acquisition amounts recognized for assets acquired and liabilities assumed and the supplemental pro-forma information will be included in our quarterly Report on Form 10-Q for the second quarter of 2020.

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Revenue Recognition - Schedule of Revenue by Product (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019
Disaggregation of Revenue [Line Items]
Net sales	[1]	$ 1,341.0	$ 1,174.5
CSCA
Disaggregation of Revenue [Line Items]
Net sales	[2]	700.6	581.8
CSCA | Upper respiratory
Disaggregation of Revenue [Line Items]
Net sales	[2]	154.6	132.8
CSCA | Pain and sleep-aids
Disaggregation of Revenue [Line Items]
Net sales	[2]	120.4	91.3
CSCA | Digestive health
Disaggregation of Revenue [Line Items]
Net sales	[2]	106.9	102.3
CSCA | Nutrition
Disaggregation of Revenue [Line Items]
Net sales	[2]	102.2	99.6
CSCA | Healthy lifestyle
Disaggregation of Revenue [Line Items]
Net sales	[2]	85.8	76.0
CSCA | Oral self-care
Disaggregation of Revenue [Line Items]
Net sales	[2]	55.3	0.0
CSCA | Skincare and personal hygiene
Disaggregation of Revenue [Line Items]
Net sales	[2]	46.7	45.5
CSCA | Vitamins, minerals, and supplements
Disaggregation of Revenue [Line Items]
Net sales	[2]	6.4	6.3
CSCA | Animal health
Disaggregation of Revenue [Line Items]
Net sales	[2]	0.0	19.6
CSCA | Other CSCA
Disaggregation of Revenue [Line Items]
Net sales	[2],[3]	22.3	8.4
CSCI
Disaggregation of Revenue [Line Items]
Net sales		382.7	350.8
CSCI | Upper respiratory
Disaggregation of Revenue [Line Items]
Net sales		84.1	71.9
CSCI | Pain and sleep-aids
Disaggregation of Revenue [Line Items]
Net sales		46.8	40.4
CSCI | Digestive health
Disaggregation of Revenue [Line Items]
Net sales		6.0	7.2
CSCI | Healthy lifestyle
Disaggregation of Revenue [Line Items]
Net sales		43.6	47.3
CSCI | Oral self-care
Disaggregation of Revenue [Line Items]
Net sales		23.2	1.6
CSCI | Skincare and personal hygiene
Disaggregation of Revenue [Line Items]
Net sales		94.7	101.9
CSCI | Vitamins, minerals, and supplements
Disaggregation of Revenue [Line Items]
Net sales		48.5	45.8
CSCI | Other CSCI
Disaggregation of Revenue [Line Items]
Net sales	[4]	35.8	34.7
RX
Disaggregation of Revenue [Line Items]
Net sales		$ 257.7	$ 241.9

[1] Derived from the location of the entity that sells to a third party.

[2] Includes net sales from our OTC contract manufacturing business.

[3] Consists primarily of diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.

[4] Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.

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Restructuring Charges (Tables)

3 Months Ended

Mar. 28, 2020

Restructuring Charges [Abstract]

Restructuring and Related Costs

The following reflects our restructuring activity (in millions):

	Three Months Ended
	March 28, 2020			March 30, 2019
Beginning balance	$	19.6		$	24.0
Additional charges	—			5.9
Payments	(3.5		)	(9.0		)
Non-cash adjustments	(0.1		)	(0.4		)
Ending balance	$	16.0		$	20.5

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Acquisitions - Ranir Global Holdings,LLC Acquisition (Details) - USD ($) $ in Millions			3 Months Ended		6 Months Ended
		Jul. 01, 2019	Mar. 28, 2020	Mar. 30, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Cash consideration - net of cash acquired			$ 11.3	$ 0.0
Estimated fair value of assets acquired and liabilities assumed:
Goodwill			4,090.0		$ 4,116.7
CSCA
Estimated fair value of assets acquired and liabilities assumed:
Goodwill			1,882.6		1,899.1
CSCI
Estimated fair value of assets acquired and liabilities assumed:
Goodwill	[1]		1,196.7		1,203.7
Ranir Global Holdings, LLC
Business Acquisition [Line Items]
Outstanding equity interest acquired (percent)		100.00%
Total base consideration		$ 750.0
Cash consideration - net of cash acquired		747.7
Net sales since acquisition					151.4
Net income since acquisition					7.6
Inventory costs stepped up to acquisition date fair value					$ 5.7
Purchase price paid		759.2
Estimated fair value of assets acquired and liabilities assumed:
Cash and cash equivalents		11.5
Accounts receivable		40.6
Inventories		59.0
Prepaid expenses and other current assets		4.0
Property, plant and equipment, net		40.8
Operating lease assets		3.7
Goodwill		291.1
Total intangible assets		389.3
Other assets		2.7
Total assets		842.7
Accounts payable		17.6
Other accrued liabilities		7.7
Payroll and related taxes		5.5
Accrued customer programs		5.7
Deferred income taxes		44.2
Other non-current liabilities		2.8
Total liabilities		83.5
Net assets acquired		759.2
Ranir Global Holdings, LLC | CSCA
Estimated fair value of assets acquired and liabilities assumed:
Goodwill			212.2
Ranir Global Holdings, LLC | CSCI
Estimated fair value of assets acquired and liabilities assumed:
Goodwill			$ 78.9
Ranir Global Holdings, LLC | In-process research and development
Estimated fair value of assets acquired and liabilities assumed:
Indefinite-lived intangibles		39.7
Ranir Global Holdings, LLC | Developed product technology, formulations, and product rights
Estimated fair value of assets acquired and liabilities assumed:
Definite-lived intangibles		$ 48.6
Useful life of intangible assets		10 years
Ranir Global Holdings, LLC | Customer relationships and distribution networks
Estimated fair value of assets acquired and liabilities assumed:
Definite-lived intangibles		$ 260.0
Useful life of intangible assets		24 years
Ranir Global Holdings, LLC | Trademarks, trade names, and brands
Estimated fair value of assets acquired and liabilities assumed:
Definite-lived intangibles		$ 41.0
Minimum | Ranir Global Holdings, LLC | Trademarks, trade names, and brands
Estimated fair value of assets acquired and liabilities assumed:
Useful life of intangible assets		20 years
Maximum | Ranir Global Holdings, LLC | Trademarks, trade names, and brands
Estimated fair value of assets acquired and liabilities assumed:
Useful life of intangible assets		25 years

[1] We had accumulated goodwill impairments of $868.4 million as of December 31, 2019 and March 28, 2020.

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Derivative Instruments and Hedging Activities - Classification of Gain (Loss) of Cash Flow And Fair Value Hedging Relationships (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019
Derivative Instruments, Gain (Loss) [Line Items]
Net sales	[1]	$ 1,341.0	$ 1,174.5
Cost of sales		857.8	725.7
Interest expense, net		30.2	28.6
Other (income) expense, net		2.4	3.2
Net Sales
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings		(0.4)	0.2
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		0.0	(0.1)
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings		0.0	0.0
Cost of sales
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings		(0.6)	(1.3)
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		0.4	(1.1)
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings		0.0	0.0
Interest expense, net
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings		0.0	0.0
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		0.0	0.0
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings		(0.4)	(0.4)
Other (income) expense, net
Foreign currency forward contracts
Amount of gain or (loss) reclassified from AOCI into earnings		0.0	0.0
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		0.0	0.0
Interest rate swap agreements
Amount of gain or (loss) reclassified from AOCI into earnings		$ 0.0	$ 0.0

[1] Derived from the location of the entity that sells to a third party.

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Condensed Consolidated Balance Sheets - USD ($) shares in Millions, $ in Millions	Mar. 28, 2020	Dec. 31, 2019
Assets
Cash and cash equivalents	$ 510.4	$ 354.3
Accounts receivable, net of allowance for credit losses of $7.1 and $6.7, respectively	1,296.7	1,243.2
Inventories	930.8	967.3
Prepaid expenses and other current assets	308.3	192.1
Total current assets	3,046.2	2,756.9
Property, plant and equipment, net	889.1	902.8
Operating lease assets	124.0	129.9
Goodwill and indefinite-lived intangible assets	4,146.2	4,185.5
Definite-lived intangible assets, net	2,877.7	2,921.2
Deferred income taxes	6.2	5.4
Other non-current assets	311.3	399.7
Total non-current assets	8,354.5	8,544.5
Total assets	11,400.7	11,301.4
Liabilities and Shareholders’ Equity
Accounts payable	555.8	520.2
Payroll and related taxes	135.6	156.4
Accrued customer programs	380.4	394.4
Other accrued liabilities	248.6	229.2
Accrued income taxes	26.8	32.2
Current indebtedness	287.8	3.4
Total current liabilities	1,635.0	1,335.8
Long-term debt, less current portion	3,182.9	3,365.8
Deferred income taxes	286.3	280.6
Other non-current liabilities	509.6	515.1
Total non-current liabilities	3,978.8	4,161.5
Total liabilities	5,613.8	5,497.3
Commitments and contingencies - Refer to Note 14
Controlling interests:
Preferred shares, $0.0001 par value per share, 10 shares authorized	0.0	0.0
Ordinary shares, €0.001 par value per share, 10,000 shares authorized	7,339.6	7,359.9
Accumulated other comprehensive income	35.9	139.4
Retained earnings (accumulated deficit)	(1,589.1)	(1,695.5)
Total controlling interests	5,786.4	5,803.8
Noncontrolling interest	0.5	0.3
Total shareholders’ equity	5,786.9	5,804.1
Total liabilities and shareholders' equity	$ 11,400.7	$ 11,301.4
Supplemental Disclosures of Balance Sheet Information
Preferred shares, issued and outstanding (in shares)	0.0	0.0
Ordinary shares, issued and outstanding (in shares)	136.3	136.1

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Leases - Weighted Average Lease Terms and Discount Rates (Details)	Mar. 28, 2020
Leases [Abstract]
Weighted-average remaining lease term - Operating leases	6 years 6 months
Weighted-average lease term - Finance leases	9 years 10 months 24 days
Weighted-average discount rate - Operating lease (percent)	4.06%
Weighted-average discount rate - Finance lease (percent)	3.41%

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Cash Flows From (For) Operating Activities
Net income	$ 106.4	$ 63.9
Adjustments to derive cash flows:
Depreciation and amortization	93.1	96.6
Share-based compensation	16.2	12.4
Impairment charges	0.0	4.1
Change in financial assets	(1.6)	(10.4)
Restructuring charges	0.0	9.3
Deferred income taxes	6.7	3.9
Amortization of debt premium	(0.7)	(1.9)
Other non-cash adjustments, net	(14.0)	13.4
Subtotal	206.1	191.3
Increase (decrease) in cash due to:
Accounts receivable	(67.6)	(48.5)
Inventories	36.5	(37.5)
Prepaid expenses	(33.4)	(3.7)
Accounts payable	53.8	75.4
Payroll and related taxes	(18.4)	(19.9)
Accrued customer programs	(13.6)	(61.7)
Accrued liabilities	11.1	(3.8)
Accrued income taxes	3.8	(10.0)
Other, net	(6.5)	12.9
Subtotal	(34.3)	(96.8)
Net cash from operating activities	171.8	94.5
Cash Flows From (For) Investing Activities
Proceeds from royalty rights	1.8	1.2
Acquisitions of businesses, net of cash acquired	(11.3)	0.0
Proceeds from the Royalty Pharma contingent milestone	0.0	250.0
Asset acquisitions	(32.7)	0.0
Additions to property, plant and equipment	(33.8)	(21.1)
Other investing, net	1.2	0.0
Net cash from (for) investing activities	(74.8)	230.1
Cash Flows From (For) Financing Activities
Payments on long-term debt	0.0	(12.3)
Borrowings (repayments) of revolving credit agreements and other financing, net	102.0	(0.3)
Cash dividends	(30.9)	(25.9)
Other financing, net	(6.4)	(3.1)
Net cash from (for) financing activities	64.7	(41.6)
Effect of exchange rate changes on cash and cash equivalents	(5.6)	3.8
Net increase (decrease) in cash and cash equivalents	156.1	286.8
Cash and cash equivalents, beginning of period	354.3	551.1
Cash and cash equivalents, end of period	$ 510.4	$ 837.9

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Contingencies (Details) $ in Millions, ₪ in Billions					3 Months Ended	4 Months Ended	12 Months Ended
	May 31, 2019 plaintiff	Jan. 16, 2019 product defendant	Jun. 28, 2017 USD ($) product defendant	Jun. 28, 2017 ILS (₪) product defendant	Mar. 28, 2020 lawsuit tender $ / ₪	Apr. 29, 2020 lawsuit	Dec. 31, 2018 case	Apr. 21, 2020 product case	Mar. 31, 2020 product case defendant	Mar. 05, 2020 product case defendant	Mar. 02, 2020 product case	Mar. 01, 2020 defendant	Feb. 12, 2020 product case	Dec. 27, 2019 defendant	Dec. 23, 2019 defendant	Dec. 20, 2019 product plaintiff case	Dec. 18, 2019 product plaintiff case	Dec. 16, 2019 defendant	Dec. 11, 2019 defendant	Nov. 14, 2019 class	Jul. 18, 2019 manufacturer individual health_plan	Feb. 22, 2019 product plaintiff case defendant	Feb. 14, 2019 case defendant	Feb. 06, 2019 product case defendant	Jan. 31, 2019 product case defendant	Nov. 15, 2018 product case	Oct. 29, 2018 product case defendant	Aug. 03, 2018 product manufacturer	Apr. 20, 2018 product case	Feb. 16, 2018 case defendant	Feb. 13, 2018 product case defendant	Jan. 26, 2018 product complaint plaintiff case	Jan. 16, 2018 product defendant	Dec. 31, 2017 case	Nov. 01, 2017 defendant	Jun. 21, 2017 product individual case	Dec. 28, 2013 product supermarket manufacturer	Dec. 31, 2011 product manufacturer class
Loss Contingencies [Line Items]
Number of Putative Classes																				3																3		3
Number of manufacturers | manufacturer																																						27
Number of generic prescription pharmaceuticals | product																																6				6		15
Number of products manufactured by the Company | product																																						2
Number of individuals | individual																																				11
Number of plaintiff groups | plaintiff																																2
Number of complaints | complaint																																2
Number of cases																																2
Number of overlapped cases																																2
Price-Fixing Lawsuit, Supermarket Chains
Loss Contingencies [Line Items]
Number of manufacturers | manufacturer																																					35
Number of supermarket chains | supermarket																																					3
Number of generic prescription pharmaceuticals | product																																					31
Price-fixing Lawsuit, Managed Care Organization
Loss Contingencies [Line Items]
Number of manufacturers | manufacturer																												27
Number of generic prescription pharmaceuticals | product																												17
Price-fixing Lawsuit, Health Insurance Carrier
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product		30
Number of defendants | defendant		30
Price-fixing Lawsuit, Healthcare Service Company
Loss Contingencies [Line Items]
Number of co-defendants | defendant																			38
Price-fixing Lawsuit, Medicare Advantage Claims Recovery Company
Loss Contingencies [Line Items]
Number of co-defendants | defendant																		39
Price-fixing Lawsuit, Several Counties in New York
Loss Contingencies [Line Items]
Number of co-defendants | defendant															28
Price-fixing Lawsuit, Healthcare Management Organization
Loss Contingencies [Line Items]
Number of co-defendants | defendant														25
Price-fixing Lawsuit, Harris County of Texas
Loss Contingencies [Line Items]
Number of co-defendants | defendant												29
Price-fixing Lawsuit, Health Plans
Loss Contingencies [Line Items]
Number of manufacturers | manufacturer																					53
Number of health plans | health_plan																					87
Number of individuals | individual																					17
Carmignac Gestion, S.A. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of co-defendants | defendant																																			3
Manning & Napier Advisors, LLC v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																																	6
Number of co-defendants | defendant																																	3
Harel Insurance Company, LTD., et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																															6
Number of cases with similar factual allegations																															3
Number of co-defendants | defendant																															2
Number of opt out cases																															4
First Manhattan Co. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals																														6
Number of co-defendants | defendant																														3
Number of opt out cases																														4
TIAA-CREF Investment Management, LLC., et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																													6
Number of opt out cases																													6
Nationwide Mutual Funds, et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																											6
Number of co-defendants | defendant																											2
Number of opt out cases																											6
WCM Alternative: Event-Drive Fund, et al. v. Perrigo Co., plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																										6
Number of opt out cases																										7
Hudson Bay Master Fund Ltd., et al. v. Perrigo Co., plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals																										6
Number of opt out cases																										8
Schwab Capital Trust, et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																									6
Number of co-defendants | defendant																									2
Number of opt out cases																									9
Sculptor Master Fund, et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																								6
Number of co-defendants | defendant																								2
Number of opt out cases																								10
Highfields Capital I LP, et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of co-defendants | defendant																							2
Number of opt out cases																							11
Aberdeen Canada Funds - Global Equity Fund, et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																						6
Number of co-defendants | defendant																						2
Number of additional plaintiffs | plaintiff																						30
Number of opt out cases																						12
Discovery Global Citizens Master Fund, Ltd., et al. v. Perrigo Co. plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																	6
Number of other funds in same plaintiff group | plaintiff																	3
Number of cases with similar factual allegations																	4
Number of opt out cases																	13
York Capital Management, L.P., et al. v. Perrigo Co. plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product																6
Number of other funds in same plaintiff group | plaintiff																6
Number of cases with similar factual allegations																4
Number of opt out cases																14
Burlington Loan Management DAC v. Perrigo Co. plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product													6
Number of cases with similar factual allegations													6
Number of opt out cases													15
Universities Superannuation Scheme Limited v. Perrigo Co. plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product											6
Number of cases with similar factual allegations											6
Number of opt out cases											16
Principal Funds, Inc., et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product										6
Number of co-defendants | defendant										2
Number of opt out cases										17
Cases Filed in Israel
Loss Contingencies [Line Items]
Number of cases																																		3
Number of cases dismissed							1
Number of cases stayed							1
Israel Elec. Corp. Employees' Educ. Fund v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product			6	6
Number of current or former directors and officers | defendant			11	11
Damages sought by plaintiff			$ 760.0	₪ 2.7
Foreign currency exchange rate, remeasurement | $ / ₪					0.28
In re Perrigo Company plc Sec. Litig.
Loss Contingencies [Line Items]
Number of defendants added | plaintiff	1
Talcum Powder Litigation
Loss Contingencies [Line Items]
Number of lawsuits | lawsuit					27
Number of tenders accepted for a portion of the defense costs and liability from a retailer | tender					1
Subsequent Event | Kuwait Investment Authority, et al. v. Perrigo Company plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product									6
Number of co-defendants | defendant									2
Number of opt out cases									18
Subsequent Event | BlackRock Global Allocation Fund, et al. v. Perrigo Co. plc, et al.
Loss Contingencies [Line Items]
Number of generic prescription pharmaceuticals | product								6
Number of opt out cases								19
Subsequent Event | Ranitidine Litigation
Loss Contingencies [Line Items]
Number of lawsuits | lawsuit						6

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Indebtedness - Additional Information (Details)	12 Months Ended
	Dec. 31, 2019 USD ($)	Mar. 28, 2020 USD ($)	Sep. 28, 2019 USD ($)	Aug. 15, 2019 USD ($)	Aug. 15, 2019 EUR (€)	Mar. 08, 2018 USD ($)	Mar. 08, 2018 EUR (€)
Debt Instrument [Line Items]
Outstanding balance	$ 0	$ 2,000,000.0
2018 Revolver
Debt Instrument [Line Items]
Face amount of debt						$ 1,000,000,000.0
Borrowings outstanding	0	$ 100,000,000.0	$ 0
2014 Term loan due December 5, 2019
Debt Instrument [Line Items]
Face amount of debt | €							€ 350,000,000.0
2018 Term loan due March 8, 2020
Debt Instrument [Line Items]
Face amount of debt				$ 317,100,000	€ 284,400,000	$ 431,000,000.0	€ 350,000,000.0
Repayments of debt	$ 24,700,000
2019 Term loan due August 15, 2022
Debt Instrument [Line Items]
Face amount of debt				$ 600,000,000.0

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Fair Value Measurements - Financial Instruments at Fair Value (Details) - USD ($) $ in Millions		Mar. 28, 2020	Dec. 31, 2019
Measured at fair value on a non-recurring basis:
Goodwill carrying amount		$ 4,090.0	$ 4,116.7
Definite-lived intangible assets carrying value		2,877.7	2,921.2
Measured at fair value on a recurring basis | Level 1
Assets:
Investment securities		3.7	6.6
Foreign currency forward contracts		0.0	0.0
Cross-currency swap		0.0	0.0
Funds associated with Israeli severance liability		0.0	0.0
Royalty Pharma contingent milestone		0.0	0.0
Total assets		3.7	6.6
Liabilities:
Foreign currency forward contracts		0.0	0.0
Contingent consideration		0.0	0.0
Total liabilities		0.0	0.0
Measured at fair value on a recurring basis | Level 2
Assets:
Investment securities		0.0	0.0
Foreign currency forward contracts		11.1	4.3
Cross-currency swap		11.4	26.3
Funds associated with Israeli severance liability		13.6	14.6
Royalty Pharma contingent milestone		0.0	0.0
Total assets		36.1	45.2
Liabilities:
Foreign currency forward contracts		13.7	8.4
Contingent consideration		0.0	0.0
Total liabilities		13.7	8.4
Measured at fair value on a recurring basis | Level 3
Assets:
Investment securities		0.0	0.0
Foreign currency forward contracts		0.0	0.0
Cross-currency swap		0.0	0.0
Funds associated with Israeli severance liability		0.0	0.0
Royalty Pharma contingent milestone		96.9	95.3
Total assets		96.9	95.3
Liabilities:
Foreign currency forward contracts		0.0	0.0
Contingent consideration		13.0	11.9
Total liabilities		13.0	11.9
Measured at fair value on a non-recurring basis
Measured at fair value on a non-recurring basis:
Definite-lived intangible assets carrying value			55.3
Measured at fair value on a non-recurring basis | Level 1
Assets:
Total assets		0.0	0.0
Measured at fair value on a non-recurring basis:
Goodwill	[1]	0.0	0.0
Definite-lived intangible assets	[2]	0.0	0.0
Measured at fair value on a non-recurring basis | Level 2
Assets:
Total assets		0.0	0.0
Measured at fair value on a non-recurring basis:
Goodwill	[1]	0.0	0.0
Definite-lived intangible assets	[2]	0.0	0.0
Measured at fair value on a non-recurring basis | Level 3
Assets:
Total assets		0.0	1,036.4
Measured at fair value on a non-recurring basis:
Goodwill	[1]	0.0	1,013.1
Definite-lived intangible assets	[2]	0.0	23.3
RX
Measured at fair value on a non-recurring basis:
Goodwill carrying amount	[3]	$ 1,010.7	1,013.9
RX | Measured at fair value on a non-recurring basis
Measured at fair value on a non-recurring basis:
Goodwill carrying amount			$ 1,122.3

[1] During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million.

[2] During the year ended December 31, 2019, definite-lived intangible assets with a carrying amount of $55.3 million were written down to a fair value of $23.3 million.

[3] We had accumulated goodwill impairments of $109.2 million as of December 31, 2019 and March 28, 2020.

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Fair Value Measurements - Fair Value of Contingent Consideration (Details) - Contingent Consideration - Discounted Cash Flow $ in Millions	3 Months Ended
	Mar. 28, 2020 USD ($)
Measurement Input, Projected Royalties
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration payments: sales-based milestones	$ 105.0
Measurement Input, Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Contingent consideration payments: sales-based milestones (percent)	52.50%

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Indebtedness (Tables)

3 Months Ended

Mar. 28, 2020

Debt Disclosure [Abstract]

Schedule of Debt

Total borrowings outstanding are summarized as follows (in millions):

			March 28, 2020			December 31, 2019
Revolving Credit Agreement
	2018 Revolver due March 8, 2023		$	100.0		$	—
Term loan
	2019 Term loan due August 15, 2022		600.0			600.0
Notes and Bonds
	Coupon	Due
	3.500%	March 15, 2021	280.4			280.4
	3.500%	December 15, 2021	309.6			309.6
	5.105%	July 28, 2023(1)	150.5			151.4
	4.000%	November 15, 2023	215.6			215.6
	3.900%	December 15, 2024	700.0			700.0
	4.375%	March 15, 2026	700.0			700.0
	5.300%	November 15, 2043	90.5			90.5
	4.900%	December 15, 2044	303.9			303.9
	Total notes and bonds		2,750.5			2,751.4
Other financing			27.1			24.6
Unamortized premium (discount), net			6.5			7.3
Deferred financing fees			(13.4		)	(14.1		)
Total borrowings outstanding			3,470.7			3,369.2
	Current indebtedness		(287.8		)	(3.4		)
Total long-term debt less current portion			$	3,182.9		$	3,365.8

(1) Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate.

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 28, 2020

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring and Nonrecurring Basis

The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):

	March 28, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Measured at fair value on a recurring basis:
Assets:
Investment securities	$	3.7	$	—	$	—	$	6.6	$	—	$	—
Foreign currency forward contracts	—		11.1		—		—		4.3		—
Cross-currency swap	—		11.4		—		—		26.3		—
Funds associated with Israeli severance liability	—		13.6		—		—		14.6		—
Royalty Pharma contingent milestone	—		—		96.9		—		—		95.3
Total assets	$	3.7	$	36.1	$	96.9	$	6.6	$	45.2	$	95.3
Liabilities:
Foreign currency forward contracts	$	—	$	13.7	$	—	$	—	$	8.4	$	—
Contingent consideration payments	—		—		13.0		—		—		11.9
Total liabilities	$	—	$	13.7	$	13.0	$	—	$	8.4	$	11.9
Measured at fair value on a non-recurring basis:
Assets:
Goodwill(1)	$	—	$	—	$	—	$	—	$	—	$	1,013.1
Definite-lived intangible assets(2)	—		—		—		—		—		23.3
Total assets	$	—	$	—	$	—	$	—	$	—	$	1,036.4

(1) During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million.

(2)

During the year ended December 31, 2019, definite-lived intangible assets with a carrying amount of $55.3 million were written down to a fair value of $23.3 million.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below summarizes the change in fair value of the Royalty Pharma contingent milestone (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Beginning balance	$	95.3	$	323.2
Payments received	—		(250.0		)
Change in fair value	1.6		10.4
Ending balance	$	96.9	$	83.6

Schedule of Fair Value Assumptions

The table below represents the volatility and rate of return:

	Three Months Ended
	March 28, 2020		March 30, 2019
Volatility	35.0	%	30.0	%
Rate of return	7.29	%	8.02	%

Reconciliation of Level 3 Liabilities

The table below summarizes the change in fair value of contingent consideration payments (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Beginning balance	$	11.9	$	15.3
Changes in value	1.1		1.2
Settlements and other adjustments	—		(4.1		)
Ending balance	$	13.0	$	12.4

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

Our fixed rate long-term debt consisted of the following (in millions):

	March 28, 2020				December 31, 2019
	Level 1		Level 2		Level 1		Level 2
Public Bonds
Carrying Value (excluding discount)	$	2,600.0	—		$	2,600.0	—
Fair value	$	2,482.5	—		$	2,618.4	—
Private placement note
Carrying value (excluding premium)	—		$	150.5	—		$	151.4
Fair value	—		$	153.6	—		$	168.4

Fair Value of Contingent Consideration

The fair value of our contingent consideration sales-based milestones as of March 28, 2020, was calculated using the following significant unobservable inputs:

			Three Months Ended
			March 28, 2020
	Valuation Technique	Unobservable Input	Range (Weighted Average)(1)
Contingent consideration payments: sales-based milestones	Discounted cash flow	Projected royalties	$	105.0
		Projected year of payment of sales-based milestones	2020 - 2035 (2028)
		Discount rate	52.5		%

(1)

Unobservable inputs were weighted based on the relative estimated milestone payments.

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Acquisitions

3 Months Ended

Mar. 28, 2020

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

Acquisitions During the Three Months Ended March 28, 2020

Dexsil^® 

On February 13, 2020, we acquired Dexsil^®, a silicon supplement brand, from RXW Group Nv, for total cash consideration paid of approximately $8.0 million. The transaction was accounted for as an asset acquisition, in which we capitalized the consideration paid as a brand-named intangible asset. We began amortizing the brand intangible over a 25-year useful life. Operating results attributable to the product are included within our CSCI segment.

Steripod^® 

On January 3, 2020, we acquired Steripod^®, a leading toothbrush accessory brand and innovator in the toothbrush protector market, from Bonfit America Inc. Total consideration paid was $26.0 million, subject to customary post-closing adjustments. The transaction was accounted for as an asset acquisition, in which we capitalized $24.9 million as a brand-named intangible asset. The remainder of the purchase price was allocated to working capital. We began amortizing the brand intangible over a 25-year useful life. Operating results attributable to the product are included within our CSCA segment.

Acquisition Accounted for as a Business Combination During the Year Ended December 31, 2019

Ranir Global Holdings, LLC

On July 1, 2019, we acquired 100% of the outstanding equity interest in Ranir Global Holdings, LLC ("Ranir"), a privately-held company, for total base consideration of $750.0 million in a debt-free, cash-free transaction. After post-closing adjustments, total cash consideration paid was $747.7 million, net of $11.5 million cash acquired. We funded the transaction with cash on hand and borrowings under the 2018 Revolver (as defined in Note 10).

Ranir is headquartered in Grand Rapids, Michigan and is a leading global supplier of private label and branded oral self-care products. Ranir's U.S. operations are reported in our CSCA segment and its non-U.S. operations are reported in our CSCI segment.

The acquisition of Ranir was accounted for as a business combination and has been reported in our Consolidated Statements of Operations as of the acquisition date. From July 1, 2019 through December 31, 2019, Ranir generated Net sales of $151.4 million and had $7.6 million of Net income, which is inclusive of a non-recurring charge of $5.7 million related to inventory costs stepped up to acquisition date fair value.

We are in the process of finalizing the allocation of goodwill to Ranir's respective tax jurisdictions. As a result, the deferred tax balance sheet amounts remain subject to adjustments once the allocation is complete. The provisional acquisition amounts recognized for deferred taxes will be finalized as soon as possible but no later than one year from the acquisition date. The final determination may result in tax bases that differ from the preliminary amount of deferred taxes and goodwill recognized.

The following table summarizes the consideration paid for Ranir and the provisional amounts of the assets acquired and liabilities assumed (in millions):

	Ranir
Purchase price paid	$	759.2
Assets acquired:
Cash and cash equivalents	$	11.5
Accounts receivable	40.6
Inventories	59.0
Prepaid expenses and other current assets	4.0
Property, plant and equipment, net	40.8
Operating lease assets	3.7
Goodwill	291.1
Definite-lived intangibles:
Developed product technology, formulations, and product rights	$	48.6
Customer relationships and distribution networks	260.0
Trademarks, trade names, and brands	41.0
Indefinite-lived intangibles:
In-process research and development	39.7
Total intangible assets	$	389.3
Other non-current assets	2.7
Total assets	$	842.7
Liabilities assumed:
Accounts payable	$	17.6
Other accrued liabilities	7.7
Payroll and related taxes	5.5
Accrued customer programs	5.7
Deferred income taxes	44.2
Other non-current liabilities	2.8
Total liabilities	$	83.5
Net assets acquired	$	759.2

The goodwill of $291.1 million arising from the acquisition consists largely of the anticipated growth from new product sales, sales to new customers, the assembled workforce, and the synergies expected from combining the operations of Perrigo and Ranir. Preliminarily, goodwill of $212.2 million and $78.9 million was allocated to our CSCA and CSCI segments, respectively. We are currently evaluating the tax deductibility of the provisional goodwill. We expect some portion to be deductible for income tax purposes. The definite-lived intangible assets acquired consisted of trademarks and trade names, developed product technologies, and customer relationships. Trademarks and trade names were assigned useful lives that ranged from 20 to 25 years. Developed product technologies were assigned 10-year useful lives and customer relationships were assigned 24-year useful lives. Customer relationships were valued using the multi-period excess earnings method. Trademarks and trade names, developed technology, and in-process research and development ("IPR&D") were valued using the relief from royalty method. Significant judgment was applied in estimating the fair value of the intangible assets acquired, which involved the use of significant estimates and assumptions with respect to the timing and amounts of cash flow projections, including revenue growth rates, projected profit margins, and discount rates.

Pro Forma Impact of Ranir Acquisition

The following table presents unaudited pro forma information as if the Ranir acquisition had occurred on January 1, 2018 and had been combined with the results reported in our Condensed Consolidated Statements of Operations for all periods presented (in millions):

	Three Months Ended
(Unaudited)	March 30, 2019
Net sales	$	1,248.4
Net income	$	70.7

The unaudited pro forma information is presented for information purposes only and is not indicative of the results that would have been achieved if the acquisition had taken place at such time. The unaudited pro forma information presented above includes adjustments primarily for amortization charges for acquired intangible assets, depreciation of property, plant and equipment that have been revalued, certain acquisition-related charges, and related tax effects.

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Investments

3 Months Ended

Mar. 28, 2020

Investments [Abstract]

Investments

INVESTMENTS

The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions):

Measurement Category	Balance Sheet Location	March 28, 2020		December 31, 2019
Fair value method	Prepaid expenses and other current assets	$	3.7	$	6.6
Fair value method(1)	Other non-current assets	$	2.3	$	2.3
Equity method	Other non-current assets	$	18.5	$	17.8

(1) Measured at fair value using the Net Asset Value practical expedient.

The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions):

		Three Months Ended
Measurement Category	Income Statement Location	March 28, 2020			March 30, 2019
Fair value method	Other (income) expense, net	$	2.9		$	6.1
Equity method	Other (income) expense, net	$	(0.7	)	$	(0.7	)

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Earnings Per Share and Shareholders' Equity

3 Months Ended

Mar. 28, 2020

Earnings Per Share [Abstract]

Earnings Per Share and Shareholders' Equity

EARNINGS PER SHARE AND SHAREHOLDERS' EQUITY

Earnings per Share

A reconciliation of the numerators and denominators used in the basic and diluted earnings per share ("EPS") calculation is as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Numerator:
Net income	$	106.4	$	63.9
Denominator:
Weighted average shares outstanding for basic EPS	136.2		135.9
Dilutive effect of share-based awards	1.1		0.3
Weighted average shares outstanding for diluted EPS	137.3		136.2
Anti-dilutive share-based awards excluded from computation of diluted EPS	1.7		2.1

Shareholders' Equity

Share Repurchases

Following the expiration of our 2015 share repurchase plan authorization, in October 2018, our Board of Directors authorized up to $1.0 billion of share repurchases with no expiration date, subject to the Board of Directors’ approval of the pricing parameters and amount that may be repurchased under each specific share repurchase program. We did not repurchase any shares during the three months ended March 28, 2020 and March 30, 2019.

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Restructuring Charges

3 Months Ended

Mar. 28, 2020

Restructuring Charges [Abstract]

Restructuring Charges

RESTRUCTURING CHARGES

We periodically take action to reduce redundant expenses and improve operating efficiencies. Restructuring activity includes severance, lease exit costs, and related consulting fees. The following reflects our restructuring activity (in millions):

	Three Months Ended
	March 28, 2020			March 30, 2019
Beginning balance	$	19.6		$	24.0
Additional charges	—			5.9
Payments	(3.5		)	(9.0		)
Non-cash adjustments	(0.1		)	(0.4		)
Ending balance	$	16.0		$	20.5

There were no charges incurred during the three months ended March 28, 2020. The charges incurred during the three months ended March 30, 2019 were primarily associated with the reorganization of our executive management team.

There were no other material restructuring programs that significantly impacted any other reportable segments for the three months ended March 30, 2019. All charges are recorded in Restructuring expense on the Condensed Consolidated Statements of Operations. The remaining $16.0 million liability for employee severance benefits is expected to be paid within the next year.

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 28, 2020

Accounting Policies [Abstract]

Schedule of New Accounting Pronouncements

As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

Recently Issued Accounting Standards Not Yet Adopted
Standard	Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
ASU 2018-14: Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans	This guidance amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other post-retirement plans.	December 31, 2020	We are currently evaluating the implications of adoption to related disclosures in our Consolidated Financial Statements.
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes	This guidance enhances and simplifies various aspects of the income tax accounting guidance in ASC 740.	January 1, 2021	We are currently evaluating the implications of adoption on our Consolidated Financial Statements.

Allowance for Credit Losses

The following table presents the allowance for credit losses activity (in millions):

	Three Months Ended
	March 28, 2020
Beginning balance	$	6.7
Provision for credit losses	0.8
Receivables written-off	(0.1		)
Recoveries collected	—
Currency translation adjustment	(0.3		)
Ending balance	$	7.1

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Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019
Income Statement [Abstract]
Net sales	[1]	$ 1,341.0	$ 1,174.5
Cost of sales		857.8	725.7
Gross profit		483.2	448.8
Operating expenses
Distribution		24.2	23.3
Research and development		41.9	40.2
Selling		147.7	148.6
Administration		122.6	125.1
Impairment charges		0.0	4.1
Restructuring		0.0	9.3
Other operating expense (income)		1.1	(4.1)
Total operating expenses		337.5	346.5
Operating income		145.7	102.3
Change in financial assets		(1.6)	(10.4)
Interest expense, net		30.2	28.6
Other (income) expense, net		2.4	3.2
Income before income taxes		114.7	80.9
Income tax expense		8.3	17.0
Net income		$ 106.4	$ 63.9
Earnings per share
Basic (in dollars per share)		$ 0.78	$ 0.47
Diluted (in dollars per share)		$ 0.77	$ 0.47
Weighted-average shares outstanding
Basic (in shares)		136.2	135.9
Diluted (in shares)		137.3	136.2

[1] Derived from the location of the entity that sells to a third party.

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Derivative Instruments and Hedging Activities - Effect of Cash Flow Hedges Included in AOCI (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020		Mar. 30, 2019
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges		$ 7.0	[1]	$ (1.0)
Amount of Gain/(Loss) Reclassified from AOCI into Earnings		(1.4)		(1.5)
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net		0.4		(1.2)
Net gain expected to be reclassified out of AOCI into earnings in the next 12 months		5.1
Interest expense, net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into earnings - Interest rate swap agreements		(0.4)		(0.4)
Amount of gain or (loss) reclassified from AOCI into earnings - Foreign currency forward contracts		0.0		0.0
Gain (Loss) on Components Excluded from Assessment of Interest Rate Cash Flow Hedge Effectiveness		0.0		0.0
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		0.0		0.0
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		2.8
Net Sales
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into earnings - Interest rate swap agreements		0.0		0.0
Amount of gain or (loss) reclassified from AOCI into earnings - Foreign currency forward contracts		(0.4)		0.2
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		0.0		(0.1)
Cost of sales
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of gain or (loss) reclassified from AOCI into earnings - Interest rate swap agreements		0.0		0.0
Amount of gain or (loss) reclassified from AOCI into earnings - Foreign currency forward contracts		(0.6)		(1.3)
Amount excluded from effectiveness testing recognized using a systematic and rational amortization approach		0.4		(1.1)
Foreign currency forward contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain/(Loss) Recorded in OCI, Cash flow hedges		7.0	[1]	$ (1.0)
Cross-currency swap
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Gain/(Loss) Recorded in OCI, Net investment hedges	[1]	$ (15.0)

[1] Net gain of $5.1 million is expected to be reclassified out of AOCI into earnings during the next 12 months.

XML

Leases - Lease Expense (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019
Leases [Abstract]
Operating leases	[1]	$ 11.4	$ 12.0
Finance leases
Amortization		1.1	0.7
Interest		0.2	0.1
Total finance leases		$ 1.3	$ 0.8

[1] (1) Includes short-term leases and variable lease costs, which are immaterial.

XML

Condensed Consolidated Statements of Shareholders' Equity Statement - USD ($) shares in Millions, $ in Millions	Total	Ordinary Shares Issued	Accumulated Other Comprehensive Income	Retained Earnings (Accumulated Deficit)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Adoption of new accounting standards | Adoption of new accounting standards	$ (3.4)		$ 0.0	$ (3.4)
Beginning balance (shares) at Dec. 31, 2018		135.9
Balance, beginning at Dec. 31, 2018	5,668.0	$ 7,421.7	84.6	(1,838.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	63.9			63.9
Other comprehensive loss	(15.6)		(15.6)
Restricted stock plan (shares)		0.2
Compensation for stock options	1.8	$ 1.8
Compensation for restricted stock	14.2	14.2
Cash dividends	(25.9)	$ (25.9)
Shares withheld for payment of employees' withholding tax liability (shares)		(0.1)
Shares withheld for payment of employees' withholding tax liability	(2.4)	$ (2.4)
Ending balance (shares) at Mar. 30, 2019		136.0
Balance, ending at Mar. 30, 2019	5,700.6	$ 7,409.4	69.0	(1,777.8)
Beginning balance (shares) at Dec. 31, 2019		136.1
Balance, beginning at Dec. 31, 2019	5,803.8	$ 7,359.9	139.4	(1,695.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	106.4			106.4
Other comprehensive loss	(103.5)		(103.5)
Restricted stock plan (shares)		0.3
Compensation for stock options	0.8	$ 0.8
Compensation for restricted stock	15.4	15.4
Cash dividends	(30.9)	$ (30.9)
Shares withheld for payment of employees' withholding tax liability (shares)		(0.1)
Shares withheld for payment of employees' withholding tax liability	(5.6)	$ (5.6)
Ending balance (shares) at Mar. 28, 2020		136.3
Balance, ending at Mar. 28, 2020	$ 5,786.4	$ 7,339.6	$ 35.9	$ (1,589.1)

XML

Indebtedness - Schedule of Borrowings Outstanding (Details) - USD ($)		3 Months Ended
		Mar. 28, 2020	Dec. 31, 2019	Sep. 28, 2019
Debt Instrument [Line Items]
Notes and Bonds		$ 2,750,500,000	$ 2,751,400,000
Other financing		27,100,000	24,600,000
Unamortized premium (discount), net		6,500,000	7,300,000
Deferred financing fees		(13,400,000)	(14,100,000)
Total borrowings outstanding		3,470,700,000	3,369,200,000
Current indebtedness		(287,800,000)	(3,400,000)
Long-term debt, less current portion		3,182,900,000	3,365,800,000
2018 Revolver
Debt Instrument [Line Items]
Revolving credit agreement		100,000,000.0	0	$ 0
2019 Term loan due August 15, 2022
Debt Instrument [Line Items]
Term loans		$ 600,000,000.0	600,000,000.0
3.500% Unsecured Senior notes due March 15, 2021
Debt Instrument [Line Items]
Series		Mar. 15, 2021
Interest rate, stated percentage		3.50%
Notes and Bonds		$ 280,400,000	280,400,000
3.5% Senior note due December 15, 2021
Debt Instrument [Line Items]
Series		Dec. 15, 2021
Interest rate, stated percentage		3.50%
Notes and Bonds		$ 309,600,000	309,600,000
5.105% Senior note due July 28, 2023
Debt Instrument [Line Items]
Series	[1]	July 28, 2023
Interest rate, stated percentage		5.105%
Notes and Bonds		$ 150,500,000	151,400,000
4.00% unsecured senior notes due November 15, 2023
Debt Instrument [Line Items]
Series		Nov. 15, 2023
Interest rate, stated percentage		4.00%
Notes and Bonds		$ 215,600,000	215,600,000
3.9% senior note due December 15, 2024
Debt Instrument [Line Items]
Series		Dec. 15, 2024
Interest rate, stated percentage		3.90%
Notes and Bonds		$ 700,000,000.0	700,000,000.0
4.375% senior note due March 15, 2026
Debt Instrument [Line Items]
Series		Mar. 15, 2026
Interest rate, stated percentage		4.375%
Notes and Bonds		$ 700,000,000.0	700,000,000.0
5.30% unsecured senior notes due November 15, 2043
Debt Instrument [Line Items]
Series		Nov. 15, 2043
Interest rate, stated percentage		5.30%
Notes and Bonds		$ 90,500,000	90,500,000
4.9% senior notes due December 15, 2044
Debt Instrument [Line Items]
Series		Dec. 15, 2044
Interest rate, stated percentage		4.90%
Notes and Bonds		$ 303,900,000	$ 303,900,000

[1] Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate.

XML

Revenue Recognition - Schedule of Contract Balances (Details) - USD ($) $ in Millions	Mar. 28, 2020	Dec. 31, 2019
Revenue from Contract with Customer [Abstract]
Short-term contract assets	$ 28.1	$ 26.3

XML

Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) $ in Millions	3 Months Ended
	Mar. 28, 2020 USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 6.7
Provision for credit losses	0.8
Receivables written-off	(0.1)
Recoveries collected	0.0
Currency translation adjustment	(0.3)
Ending balance	$ 7.1

XML

Contingencies

3 Months Ended

Mar. 28, 2020

Commitments and Contingencies Disclosure [Abstract]

Contingencies

CONTINGENCIES

In view of the inherent difficulties of predicting the outcome of various types of legal proceedings, we cannot determine the ultimate resolution of the matters described below. We establish reserves for litigation and regulatory matters when losses associated with the claims become probable and the amounts can be reasonably estimated. The actual costs of resolving legal matters may be substantially higher or lower than the amounts reserved for those matters. For matters where the likelihood or extent of a loss is not probable or cannot be reasonably estimated as of March 28, 2020, we have not recorded a loss reserve. If certain of these matters are determined against us, there could be a material adverse effect on our financial condition, results of operations, or cash flows. We currently believe we have valid defenses to the claims in these lawsuits and intend to defend these lawsuits vigorously regardless of whether or not we have a loss reserve. Other than what is disclosed below, we do not expect the outcome of the litigation matters to which we are currently subject to, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations, or cash flows. 

Price-Fixing Lawsuits

We are a defendant in several cases in the generic pricing multidistrict litigation MDL No. 2724 (United States District Court for Eastern District of Pennsylvania). This multidistrict litigation, which has many cases that do not include Perrigo, includes class action and opt-out cases for federal and state antitrust claims.

We have been named as a co-defendant with certain other generic pharmaceutical manufacturers in a number of class actions alleging single-product conspiracies to fix or raise the prices of certain drugs and/or allocate customers starting, in some instances, as early as June 2013. The class actions were filed on behalf of putative classes of (a) direct purchasers, (b) end payors, and (c) indirect resellers. The products in question are Clobetasol gel, Desonide, and Econazole. Pursuant to the court’s schedule staging various cases in phases, we moved to dismiss the complaints relating to Clobetasol and Econazole. The court issued a decision denying the motions in part in October 2018 and issued a second decision in February 2019 dismissing various state law claims, but allowing other state law claims to proceed. We filed answers to the Clobetasol gel complaints on December 31, 2018. We filed answers to the Desonide and Econazole complaints on March 15, 2019. The cases are proceeding in document discovery.

The same three putative classes have each filed complaints naming us as a co-defendant, along with 27 other manufacturers, alleging an overarching conspiracy to fix or raise the prices of 15 generic prescription pharmaceutical products starting in 2011. Perrigo manufactures only two of the products at issue, Nystatin cream and Nystatin ointment. Motions to dismiss certain single-product and overarching complaints listed above were filed on February 21, 2019. Plaintiffs’ oppositions were due on May 2, 2019 and defendants’ replies were filed on June 13, 2019. On August 15, 2019, the Court denied the Defendants’ joint motions to dismiss certain overarching conspiracy allegations. The cases are proceeding in document discovery.

In December 2019, both the end payor and indirect reseller class plaintiffs filed new overarching complaints against us, dozens of other manufacturers of generic prescription pharmaceuticals, and certain individuals. The Direct Purchaser plaintiffs filed a new overarching conspiracy complaint in February 2020. The complaints also allege conspiracies relating to the sale of various new products, the majority of which Perrigo neither makes nor sells. The indirect reseller complaint alleges that Perrigo conspired in connection with its sales of Immiquimod cream, Desonide cream and ointment, and Hydrocortisone Valerate cream. The end payor and direct purchaser

complaints allege that Perrigo conspired in connection with its sale of the following drugs: Betamethasone Dipropionate, Bromocriptine Mesylate, Clindamycin Phosphate, Fenofibrate, Halobetasol Proprionate, Hydrocortisone Valerate, Permethrin, and Triamcinolone Acetonide. Perrigo has not yet responded to the complaints, and responses are currently stayed.

On March 11, 2020, the indirect reseller plaintiffs filed a motion to amend the December 2019 complaint. The proposed amended complaint adds additional products and allegations to the original complaint. Perrigo is discussed in connection with allegations concerning an additional drug, Betamethasone Dipropionate lotion. On April 24, 2020, defendants entered into a joint stipulation with the indirect reseller plaintiffs not to oppose the motion to amend and to stay responses to the amended complaint. The stipulation and proposed order is pending Court approval.

We have also been named a co-defendant along with 35 other manufacturers in a complaint filed by three supermarket chains alleging that defendants conspired to fix prices of 31 generic prescription pharmaceutical products starting in 2013. The only allegations specific to us relate to Clobetasol, Desonide, Econazole, Nystatin cream, and Nystatin ointment. Perrigo moved to dismiss this complaint on February 21, 2019. The motion was denied on August 15, 2019. The case is proceeding in document discovery. On February 3, 2020, the plaintiffs requested leave to file a second amended complaint. The proposed amended complaint adds dozens of additional products and allegations to the original complaint. Perrigo is discussed in connection with allegations concerning an additional drug, Fenofibrate. Defendants opposed the motion for leave to file a second amended complaint and a sur-reply in support of defendants’ opposition is due to be filed on March 30, 2020.

On August 3, 2018, a large managed care organization filed a complaint against us alleging price-fixing and customer allocation concerning 17 different products among 27 manufacturers including Perrigo. The only allegations specific to us concern Clobetasol. Perrigo moved to dismiss this complaint on February 21, 2019. The motion was denied on August 15, 2019. The case is proceeding in document discovery.

On January 16, 2019, a similar suit was brought by a health insurance carrier in the U.S. District Court for the District of Minnesota alleging a conspiracy to fix prices of 30 products among 30 defendants. The only allegations specific to us concern Clobetasol gel, Desonide, Econazole, Nystatin cream, and Nystatin ointment. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On July 18, 2019, 87 health plans filed a Praecipe to Issue Writ of Summons in Pennsylvania state court to commence an action against 53 generic pharmaceutical manufacturers and 17 individuals, alleging antitrust violations concerning generic pharmaceutical drugs. While Perrigo was named as a defendant, no complaint has been filed. Proceedings in the case, including the filing of a complaint, have been stayed at the request of the plaintiffs.

On December 11, 2019, a health care service company filed a complaint against us and 38 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other multi-district litigation ("MDL") complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin cream/ointment. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On December 16, 2019, a Medicare Advantage claims recovery company filed a complaint against us and 39 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, Econazole, and Nystatin cream/ointment. The complaint was originally filed in the District of Connecticut but will be consolidated

into the MDL. Perrigo has not yet had the opportunity to respond to the complaint, and responses are currently stayed.

On December 23, 2019, several counties in New York filed an amended complaint against us and 28 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, and Econazole. The complaint was originally filed in New York State court but was removed to federal court and will likely be consolidated into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On December 27, 2019, a healthcare management organization filed a complaint against us and 25 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, and Econazole. The complaint was filed originally in the Northern District of California but will be consolidated into the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed.

On March 1, 2020, Harris County of Texas, filed a complaint against Perrigo New York, Inc. and 29 other pharmaceutical companies alleging an overarching conspiracy to fix, raise or stabilize prices of dozens of products, most of which Perrigo neither makes nor sells. The product conspiracies allegedly involving Perrigo focus on the same products as those involved in other MDL complaints naming Perrigo: Clobetasol, Desonide, and Econazole. The complaint was originally filed in New York State court but will be transferred to the MDL. Perrigo has not yet responded to the complaint, and responses are currently stayed.

At this stage, we cannot reasonably predict the outcome of the liability if any, associated with the claims listed above.

Securities Litigation

In the United States (cases related to events in 2015-2017)

On May 18, 2016, a shareholder filed a securities case against us and our former CEO, Joseph Papa, in the U.S. District Court for the District of New Jersey (Roofers’ Pension Fund v. Papa, et al.). The plaintiff purported to represent a class of shareholders for the period from April 21, 2015 through May 11, 2016, inclusive. The original complaint alleged violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against both defendants and 20(a) control person liability against Mr. Papa. In general, the allegations concerned the actions taken by us and the former executive to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015. The plaintiff also alleged that the defendants provided inadequate disclosure concerning alleged integration problems related to the Omega acquisition in the period from April 21, 2015 through May 11, 2016. On July 19, 2016, a different shareholder filed a securities class action against us and our former CEO, Joseph Papa, also in the District of New Jersey (Wilson v. Papa, et al.). The plaintiff purported to represent a class of persons who sold put options on our shares between April 21, 2015 and May 11, 2016. In general, the allegations and the claims were the same as those made in the original complaint filed in the Roofers' Pension Fund case described above. On December 8, 2016, the court consolidated the Roofers' Pension Fund case and the Wilson case under the Roofers' Pension Fund case number. In February 2017, the court selected the lead plaintiffs for the consolidated case and the lead counsel to the putative class. In March 2017, the court entered a scheduling order.

On June 21, 2017, the court-appointed lead plaintiffs filed an amended complaint that superseded the original complaints in the Roofers’ Pension Fund case and the Wilson case. In the amended complaint, the lead plaintiffs seek to represent three classes of shareholders - shareholders who purchased shares during the period April 21, 2015 through May 3, 2017 on the U.S. exchanges; shareholders who purchased shares during the same period on the Tel Aviv exchange; and shareholders who owned shares on November 12, 2015 and held such stock through at least 8:00 a.m. on November 13, 2015 (the final day of the Mylan tender offer) regardless of whether the shareholders tendered their shares. The amended complaint names as defendants us and 11 current or former directors and officers of Perrigo (Mses. Judy Brown, Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, and Messrs. Joe Papa, Marc Coucke, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, and Donal O’Connor). The

amended complaint alleges violations of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against all defendants and 20(a) control person liability against the 11 individuals. In general, the allegations concern the actions taken by us and the former executives to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015 and the allegedly inadequate disclosure throughout the entire class period related to purported integration problems related to the Omega acquisition, alleges incorrect reporting of organic growth at the Company and at Omega, alleges price fixing activities with respect to six generic prescription pharmaceuticals, and alleges improper accounting for the Tysabri^® royalty stream. The amended complaint does not include an estimate of damages. During 2017, the defendants filed motions to dismiss, which the plaintiffs opposed. On July 27, 2018, the court issued an opinion and order granting the defendants’ motions to dismiss in part and denying the motions to dismiss in part. The court dismissed without prejudice defendants Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, Donal O’Connor, and Marc Coucke. The court also dismissed without prejudice claims arising from the Tysabri^® accounting issue described above and claims alleging incorrect disclosure of organic growth described above. The defendants who were not dismissed are Perrigo Company plc, Joe Papa, and Judy Brown. The claims (described above) that were not dismissed relate to the integration issues regarding the Omega acquisition, the defense against the Mylan tender offer, and the alleged price fixing activities with respect to six generic prescription pharmaceuticals. The defendants who remain in the case (the Company, Mr. Papa, and Ms. Brown) have filed answers denying liability, and the discovery stage of litigation has begun. We intend to defend the lawsuit vigorously.

On November 14, 2019, the court granted the lead plaintiffs’ motion and certified three classes for the case: (i) all those who purchased shares between April 21, 2015 through May 2, 2017 inclusive on a U.S. exchange and were damaged thereby; (ii) all those who purchased shares between April 21, 2015 through May 2, 2017 inclusive on the Tel Aviv exchange and were damaged thereby; and (iii) all those who owned shares as of November 12, 2015 and held such stock through at least 8:00 a.m. on November 13, 2015 (whether or not a person tendered shares in response to the Mylan tender offer)(the "tender offer class"). Defendants filed a petition for leave to appeal in the Third Circuit challenging the certification of the tender offer class, and the class plaintiffs have filed an opposition. On April 30, 2020, the Third Circuit denied leave to appeal.

On November 1, 2017, Carmignac Gestion, S.A., filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled Carmignac Gestion, S.A. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), 14(e), and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through April 2016. Plaintiff contends that the defendants provided inadequate disclosure throughout the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, our reporting about the generic prescription pharmaceutical business and its prospects, and the activities surrounding the efforts to defeat the Mylan tender offer during 2015. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers’ Pension Fund case described above. The plaintiff does not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above) the parties to this case conferred about how this case should proceed. Because this plaintiff made some factual allegations that were not asserted in the Roofers’ Pension Fund case, the parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The case is now in the discovery phase. We intend to defend the lawsuit vigorously.

On January 16, 2018, Manning & Napier Advisors, LLC filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled Manning & Napier Advisors, LLC v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5) and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with

respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff did not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above) the parties to this case conferred about how this case should proceed. Because this plaintiff made some factual allegations that were not asserted in the Roofers’ Pension Fund case, the parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. On January 3, 2020, the plaintiff filed a consented notice of voluntary dismissal dismissing its section 18 claims with prejudice and dismissing its 10(b) and 20(a) claims without prejudice. The Court approved the dismissal on January 7, 2020, and this case has now ended.

On January 26, 2018, two different plaintiff groups (the Mason Capital group and the Pentwater group) each filed a lawsuit against us and the same individuals who are defendants in the amended complaint in the securities class action case described above (Roofers’ Pension Fund case). The same law firm represents these two plaintiff groups, and the two complaints are substantially similar. These two cases are not securities class actions. One case is styled Mason Capital L.P., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The other case is styled Pentwater Equity Opportunities Master Fund Ltd., et al.  v. Perrigo Company plc, et al., and also was filed in the U.S. District Court for the District of New Jersey. Both cases are assigned to the same federal judge that is hearing the class action case and the other individual cases described above (Carmignac). Each complaint asserts claims under Securities Exchange Act sections 14(e) (related to tender offer disclosures) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs' allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in these two cases overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the allegations in the Carmignac case described above. The plaintiffs do not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to these cases conferred about how these cases should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in these cases. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the cases has begun. We intend to defend the lawsuits vigorously.

On February 13, 2018, a group of plaintiff investors affiliated with Harel Insurance Investments & Financial Services, Ltd. filed a lawsuit against us and the same individuals who are defendants in the amended complaint in the securities class action case described above (Roofers’ Pension Fund case). This lawsuit is not a securities class action. The new complaint is substantially similar to the amended complaint in the Roofers' Pension Fund case. The relevant period in the new complaint stretches from February 2014 to May 2, 2017. The complaint adds as defendants two individuals who served on our Board prior to 2016. The case is styled Harel Insurance Company, Ltd., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey and is assigned to the same federal judge that is hearing the class action cases and the three other individual cases described above (Carmignac, Mason Capital, and Pentwater). The Harel Insurance Company complaint asserts claims under Securities Exchange Act section 10(b) (and related SEC Rule 10b‑5) and section 14(e) (related to tender offer disclosures) against all defendants as well as 20(a) control person liability against the individual defendants. The complaint also asserts claims based on Israeli securities laws. In general, the plaintiffs' allegations describe events during the period from February 2014 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer events in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset from February 2014 until the withdrawal of past financial statements in April 2017. Many of the factual allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the allegations in the four opt out cases also described above. The plaintiffs do not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should

proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the litigation has begun. We intend to defend the lawsuit vigorously.

On February 16, 2018, First Manhattan Company filed a securities lawsuit against us and three individuals (former Chairman and CEO Joseph Papa, former CFO Judy Brown, and former Executive Vice President and Board member Marc Coucke). This lawsuit is not a securities class action. The case is styled First Manhattan Co. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the four other opt out cases. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), 14(e), and 18 against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiff’s allegations focus on events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. This lawsuit was filed by the same law firm that filed the Carmignac case described above and generally makes the same factual assertions as in the Carmignac case. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. On April 20, 2018, the plaintiff filed an amended complaint that did not materially change the factual allegations of the original complaint. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. Because this plaintiff made some factual allegations that were not asserted in the Roofers’ Pension Fund case, the parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case and the remaining defendants filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The case is now in the discovery phase. We intend to defend the lawsuit vigorously.

On April 20, 2018, a group of plaintiff investors affiliated with TIAA-CREF filed a lawsuit against us and the same individuals who are the defendants in the Harel Insurance case complaint. This lawsuit is not a securities class action. The law firm representing the plaintiffs in the Harel Insurance case also represents the TIAA-CREF plaintiff entities in this case, and the new complaint is substantially similar to the Harel Insurance complaint. The relevant period in the new complaint is August 14, 2014 to May 2, 2017 inclusive. The case is styled TIAA-CREF Investment Management, LLC., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey and is assigned to the same federal judge that is hearing the class action case and the six other individual cases described above (Carmignac, Mason Capital, Pentwater, Harel Insurance, and First Manhattan). The TIAA-CREF Investment Management complaint asserts claims under Securities Exchange Act section 10(b) (and related SEC Rule l0b-5), section 14(e) (related to tender offer disclosures) against all defendants as well as section 20(a) control person liability against the individual defendants. In general, plaintiffs' allegations describe events during the period from August 2014 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer events in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset from August 2014 until the withdrawal of past financial statements in April 2017. Many of the factual allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. After the court issued its July 2018 opinion in the Roofers’ Pension Fund case (described above) the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to this case and the remaining defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the litigation has begun. We intend to defend the lawsuit vigorously.

On October 29, 2018, Nationwide Mutual Funds and Nationwide Variable Insurance Trust (both on behalf of several fund series) filed a securities lawsuit against us and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Nationwide Mutual Funds, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the six other opt out cases.

The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b-5), and 14(e) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs' allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the First Manhattan case and the Carmignac case described above and generally makes the same factual assertions as in the First Manhattan case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. The defendants (the Company, Mr. Papa, and Ms. Brown) filed a motion to dismiss addressing the additional allegations in this case. On July 31, 2019, the court granted the motion to dismiss in part and denied it in part. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The case is now in the discovery phase. We intend to defend the lawsuit vigorously.

On November 15, 2018, a group of plaintiff investors affiliated with Westchester Capital Funds filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P. case and the Pentwater Equity Opportunities Master Fund Ltd. case (described above) represents the affiliates of the Westchester Funds in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations of the complaints in the Mason Capital and in the Pentwater cases described above. The case is styled WCM Alternative: Event-Drive Fund, et al. v. Perrigo Co., plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The WCM case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the seven other individual cases described above. The complaint asserts claims under Securities Exchange Act sections 10(b) (and SEC Rule 10b‑5) and 14(e) against all defendants as well as 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 as well us up through May 3, 2017. Plaintiffs identify disclosures concerning the valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers’ Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the cases has begun. We intend to defend the lawsuit vigorously.

On November 15, 2018, a group of plaintiff investors affiliated with Hudson Bay Capital Management LP filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equity Opportunities Master Fund Ltd., and the WCM cases (described above) represents the affiliates of Hudson Bay Capital Management in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations of the complaints in the Mason Capital, in the Pentwater, and in the WCM cases described above. The case is styled Hudson Bay Master Fund Ltd., et al. v. Perrigo Co., plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Hudson Bay Fund case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the eight other individual cases described above. The complaint asserts claims under Securities Exchange Act section 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers’ Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties

to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability, and the discovery stage of the cases has begun. We intend to defend the lawsuit vigorously.

On January 31, 2019, Schwab Capital Trust and a variety of other Schwab entities filed a securities lawsuit against us and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Schwab Capital Trust, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the nine other opt out cases. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5), and 14(e) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, and the Nationwide Mutual Funds case described above and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. The parties agreed that the defendants would not respond to the complaint until 45 days after the court decided the motion to dismiss then-pending in the Carmignac, First Manhattan, and Nationwide Mutual cases described above. On July 31, 2019, the court granted in part and denied in part that motion to dismiss. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. This case has now also moved into the discovery phase. We intend to defend the lawsuit vigorously.

On February 6, 2019, OZ Master Fund, Ltd. and a related entity filed a securities lawsuit against us and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled OZ Master Fund, Ltd., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. Recently the names of the plaintiff entities were changed, and the case is now styled Sculptor Master Fund, et al. v. Perrigo Company plc, et al. The case was assigned to the same judge hearing the class action case and the ten other opt out cases described above. The complaint asserts claims under Securities Exchange Act sections 10(b) (and SEC Rule 10b‑5), and 14(e) against all defendants as well as 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. The parties agreed that the court's rulings in July 2018 in the Roofers' Pension Fund case (discussed above) and in July 2019 in the Carmignac and other cases (discussed above) will apply to this case as well. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. The parties agreed to a proposed schedule, which the court approved in July 2019, by which the plaintiffs are participating in the discovery proceedings in the Roofers' Pension Fund case described above and the various individual cases also described above. We intend to defend the lawsuit vigorously.

On February 14, 2019, Highfields Capital I LP and related entities filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Highfields Capital I LP, et al. v. Perrigo Company plc, et al., and was initially filed in the U.S. District Court for the District of Massachusetts. The complaint asserts claims under Securities Exchange Act sections 14(e) and 18 against all defendants, as well as 20(a) control person liability against the individual defendants. The complaint also asserts Massachusetts state law claims under Massachusetts Unfair Business Methods Law (chapter 93A § 11), and Massachusetts common law claims of tortious interference with prospective economic advantage, common law fraud, negligent misrepresentation, and unjust enrichment. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the

period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged improper accounting for the Tysabri^® asset. Some of the allegations in this case overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and with allegations in one or more of the opt out cases described above. Plaintiffs do not provide a clear calculation of how they estimated damages and seek treble damages, punitive damages, and attorney's fees. In March 2020, the District of Massachusetts court granted defendants’ motion and transferred this case to the U.S. District Court for the District of New Jersey so that the activities in this case can proceed in tandem with the eleven other cases in the District of New Jersey listed above. After the transfer, the plaintiffs agreed to dismiss their Massachusetts state law claims and proceed on their federal law claims. Plaintiffs will participate in the discovery activities of the other cases described above. Meanwhile, the defendants will move to dismiss certain factual allegations that plaintiffs were unwilling to dismiss. We intend to defend the lawsuit vigorously.

On February 22, 2019, Aberdeen Canada Funds -- Global Equity Funds (and 30 other entities, some unrelated to Aberdeen) filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Aberdeen Canada Funds -- Global Equity Fund, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the class action case and the twelve other opt-out cases pending in that court. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5) against all defendants and 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged undisclosed pricing pressure for generic prescription pharmaceuticals, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, the Nationwide Mutual Funds case, and the Schwab Capital Trust case described above, and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. On July 31, 2019, the court granted in part and denied in part the motion to dismiss in the Carmignac and related cases, which ruling also applies to this case. The defendants (the Company, Mr. Papa, and Ms. Brown) filed answers denying liability. This case has now moved into the discovery phase. We intend to defend the lawsuit vigorously.

On December 18, 2019, Discovery Global Citizens Master Fund, Ltd., and three other funds from the same group of companies filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, and the Hudson Bay Master Fund, Ltd. cases represents the plaintiffs in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those four earlier cases. The case is styled Discovery Global Citizens Master Fund, Ltd., et al. v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Discovery Global case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the thirteen other individual cases described above. The complaint asserts claims under Securities Exchange Act section § 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the case has begun. We intend to defend this case vigorously.

On December 20, 2019, York Capital Management, L.P. and six other related funds from the same group of companies filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, the Hudson Bay Master Fund, Ltd., and the Discovery Global cases represents the plaintiffs in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those four earlier cases. The case is styled York Capital Management, L.P., et al. v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The York Capital case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the fourteen other individual cases in described above. The complaint asserts claims under Securities Exchange Act section § 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the cases has begun. We intend to defend this case vigorously.

On February 12, 2020, Burlington Loan Management DAC filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, the Hudson Bay Master Fund, Ltd., the Discovery Global, and the York Capital cases represents the plaintiff in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those six earlier cases. The case is styled Burlington Loan Management DAC v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Burlington Loan case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the fifteen other individual cases in described above. The complaint asserts claims under Securities Exchange Act section 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiff’s allegations describe events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the cases has begun. We intend to defend this case vigorously.

On March 2, 2020, Universities Superannuation Scheme Limited filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The same law firm that represents the plaintiffs in the Mason Capital L.P., the Pentwater Equities Opportunities Master Fund Ltd., the WCM, the Hudson Bay Master Fund, Ltd., the Discovery Global, and the York Capital cases represents the plaintiff in this lawsuit. The factual allegations of the complaint are substantially similar to the factual allegations in those six earlier cases. The case is styled Universities Superannuation Scheme Limited v. Perrigo Co. plc, et al., and is filed in the U.S. District Court for the District of New Jersey. The Universities Superannuation case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the sixteen other individual cases described above. The complaint asserts claims under Securities Exchange Act sections 10(b) and 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiff’s allegations describe events during the period from April 2015 through May 2017. Plaintiff contends that the defendants provided inadequate disclosure during the tender offer period in 2015 as well as at other times in 2016 and point to disclosures at various times during these periods concerning the valuation and

integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiff does not provide an estimate of damages. In view of the court’s July 2018 opinion in the Roofers’ Pension Fund case (described above), the parties to this case conferred about how this case should proceed. The parties agreed that the ruling in the Roofers’ Pension Fund case would apply equally to the common allegations in this case. The defendants (the Company, Mr. Papa, and Ms. Brown) will file answers denying liability, and the discovery stage of the case has begun. We intend to defend the lawsuit vigorously.

On March 5, 2020, Principal Funds, Inc. (and other related entities) filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Principal Funds, Inc., et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the Roofers' Pension Fund class action case and the seventeen other opt-out cases pending in that court. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5) against all defendants and 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged undisclosed pricing pressure for generic prescription pharmaceuticals, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, the Nationwide Mutual Funds case, the Schwab Capital Trust case, and the Aberdeen Funds case described above, and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. On July 31, 2019, the court granted in part and denied in part the motion to dismiss in the Carmignac and related cases, which ruling also applies to this case. The defendants (the Company, Mr. Papa, and Ms. Brown) are filing answers denying liability. This case has now moved into the discovery phase. We intend to defend the lawsuit vigorously.

On March 31, 2020, Kuwait Investment Authority (and another related entity) filed a securities lawsuit against the Company and two individuals (former Chairman and CEO Joseph Papa and former CFO Judy Brown). This lawsuit is not a securities class action. The case is styled Kuwait Investment Authority, et al. v. Perrigo Company plc, et al., and was filed in the U.S. District Court for the District of New Jersey. The case was assigned to the same judge hearing the Roofers' Pension Fund class action case and the eighteen other opt-out cases pending in that court. The complaint asserts claims under Securities Exchange Act sections 10(b) (and Rule 10b‑5) against all defendants and 20(a) control person liability against the individual defendants. In general, the plaintiffs’ allegations focus on events during the period from April 2015 through May 2017 (including the period of the Mylan tender offer). Plaintiffs contend that the defendants provided inadequate disclosure at various times during the period concerning the valuation and integration of Omega, the financial guidance provided by the Company during that period, and alleged undisclosed pricing pressure for generic prescription pharmaceuticals, and alleged price fixing activities with respect to six generic prescription pharmaceuticals. This lawsuit was filed by the same law firm that filed the Carmignac case, the First Manhattan case, the Nationwide Mutual Funds case, the Schwab Capital Trust case, the Aberdeen Funds case, and the Principal Funds case described above, and generally makes the same factual assertions as in the Nationwide Mutual Funds case. The complaint does not include factual allegations that the Court dismissed in the July 2018 ruling in the Roofers' Pension Fund case also described above. Many of the allegations in this case also overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above. The plaintiffs do not provide an estimate of damages. The parties are negotiating a schedule concerning the defendants’ answers. It is anticipated that the plaintiffs will participate in the discovery activities related to all the securities cases listed above. We intend to defend the lawsuit vigorously.

On April 21, 2020, BlackRock Global Allocation Fund and multiple affiliated entities filed a lawsuit against us, our former Chairman and CEO Joseph Papa and our former CFO Judy Brown. This lawsuit is not a securities class action. The factual allegations of the complaint are substantially similar to the factual allegations in many of the cases described above. The case is styled BlackRock Global Allocation Fund, et al. v. Perrigo Co. plc, et al., and

is filed in the U.S. District Court for the District of New Jersey. The BlackRock Global case is assigned to the same federal judge that is hearing the Roofers' Pension Fund class action case and the nineteen other individual cases described above. The complaint asserts claims under Securities Exchange Act section 10(b) (and SEC Rule 10b-5) and section 14(e) against all defendants and section 20(a) control person claims against the individual defendants. In general, the plaintiffs’ allegations describe events during the period from April 2015 through May 2017. Plaintiffs contend that the defendants provided inadequate disclosure during the tender offer period in 2015 and point to disclosures at various times during the period concerning valuation and integration of Omega, the financial guidance provided by us during that period, alleged price fixing activities with respect to six generic prescription pharmaceuticals, alleged lower performance in the generic prescription drug business during 2015 and alleged improper accounting for the Tysabri^® asset. Many of the factual allegations in this complaint overlap with the allegations of the June 2017 amended complaint in the Roofers' Pension Fund case described above and the opt out cases described above. The plaintiffs do not provide an estimate of damages. The parties have just begun discussions about the schedule for how this case should proceed.  We intend to defend this case vigorously.

In Israel (cases related to events in 2015-2017)

Because our shares are traded on the Tel Aviv exchange under a dual trading arrangement, we are potentially subject to securities litigation in Israel. Three cases were filed; one was voluntarily dismissed in each of 2017 and 2018 and one was stayed in 2018. We are consulting Israeli counsel about our response to these allegations and we intend to defend this case vigorously.

On June 28, 2017, a plaintiff filed a complaint in Tel Aviv District Court styled Israel Elec. Corp. Employees’ Educ. Fund v. Perrigo Company plc, et al. The lead plaintiff seeks to represent a class of shareholders who purchased Perrigo stock on the Tel Aviv exchange during the period April 24, 2015 through May 3, 2017 and also a claim for those that owned shares on the final day of the Mylan tender offer (November 13, 2015). The amended complaint names as defendants the Company, Ernst & Young LLP (the Company’s auditor), and 11 current or former directors and officers of Perrigo (Mses. Judy Brown, Laurie Brlas, Jacqualyn Fouse, Ellen Hoffing, and Messrs. Joe Papa, Marc Coucke, Gary Cohen, Michael Jandernoa, Gerald Kunkle, Herman Morris, and Donal O’Connor). The complaint alleges violations under U.S. securities laws of Securities Exchange Act sections 10(b) (and Rule 10b‑5) and 14(e) against all defendants and 20(a) control person liability against the 11 individuals or, in the alternative, under Israeli securities laws. In general, the allegations concern the actions taken by us and our former executives to defend against the unsolicited takeover bid by Mylan in the period from April 21, 2015 through November 13, 2015 and the allegedly inadequate disclosure concerning purported integration problems related to the Omega acquisition, alleges incorrect reporting of organic growth at the Company, alleges price fixing activities with respect to six generic prescription pharmaceuticals, and alleges improper accounting for the Tysabri^® royalty stream. The plaintiff indicates an initial, preliminary class damages estimate of 2.7 billion NIS (approximately $760.0 million at 1 NIS = 0.28 cents). After the other two cases filed in Israel were voluntarily dismissed, the plaintiff in this case agreed to stay this case pending the outcome of the Roofers’ Pension Fund case in the U.S. (described above). The Israeli court approved the stay, and this case is now stayed. We intend to defend the lawsuit vigorously.

In the United States (cases related to Irish Tax events)

On January 3, 2019, a shareholder filed a complaint against the Company, our CEO Murray Kessler, and our former CFO Ronald Winowiecki in the U.S. District Court for the Southern District of New York (Masih v. Perrigo Company, et al.). Plaintiff purports to represent a class of shareholders for the period November 8, 2018 through December 20, 2018, inclusive. The complaint alleges violations of Securities Exchange Act section 10(b) (and Rule 10b‑5) against all defendants and section 20(a) control person liability against the individual defendants. In general the allegations contend that the Company, in its Form 10‑Q filed November 8, 2018, disclosed information about an October 31, 2018 audit finding letter received from Irish tax authorities but failed to disclose enough material information about that letter until December 20, 2018, when we filed a current report on Form 8‑K about Irish tax matters. The plaintiff does not provide an estimate of class damages. The Court selected lead plaintiffs and changed the name of the case to In re Perrigo Company plc Sec. Litig. The lead plaintiffs filed an amended complaint on April 12, 2019, which named the same defendants, asserted the same class period, and invoked the same Exchange Act sections. The amended complaint generally repeated the allegations of the original complaint with a few additional details and adds that the defendants also failed to timely disclose the Irish tax authorities’ Notice of Amended Assessment received on November 29, 2018. Defendants filed a motion to dismiss on May 3, 2019. On May 31, 2019, the plaintiffs filed a second amended complaint, which asserted a longer class period

(March 1, 2018 through December 20, 2018) and added one additional individual defendant, former CEO Uwe Roehrhoff. In general, the second amended complaint contends that Perrigo’s disclosures about the Irish tax audit were inadequate beginning with Perrigo’s 10-K filed on March 1, 2018 through December 20, 2018 and repeats many of the allegations of the April 2019 amended complaint. The second amended complaint alleges violations of Securities Exchange Act section 10(b) (and SEC Rule 10b-5) against all defendants and section 20(a) control person liability against the three individual defendants. All defendants filed a joint motion to dismiss. On January 23, 2020, the court granted the motion to dismiss in part and denied it in part, dismissing Mr. Roehrhoff as a defendant and dismissing allegations of inadequate disclosures related to the audit by Irish Revenue during the period March 2018 through October 30, 2018. The court permitted the plaintiffs to pursue their claims against us, Mr. Kessler, and Mr. Winowiecki related to disclosures after Perrigo received the October 30, 2018 audit findings letter and later events through December 20, 2018. The Defendants filed answers on February 13, 2020 denying liability, and the Court held a scheduling conference on February 28, 2020, and issued a scheduling order on March 3, 2020. Discovery on the remaining issues is underway. We intend to defend the lawsuit vigorously.

In Israel (cases related to Irish Tax events)

On December 31, 2018, a shareholder filed an action against the Company, our CEO Murray Kessler, and our former CFO Ronald Winowiecki in Tel Aviv District Court (Baton v. Perrigo Company plc, et. al.). The case is a securities class action brought in Israel making similar factual allegations for the same period as those asserted in the In re Perrigo Company plc Sec. Litig case in New York federal court. This case alleges that persons who invested through the Tel Aviv stock exchange can assert claims under Israeli securities law that will follow the liability principles of Sections 10(b) and 20(a) of the U.S. Securities Exchange Act. The plaintiff does not provide an estimate of class damages. In 2019, the court granted two requests by Perrigo to stay the proceedings pending the resolution of proceedings in the United States. Perrigo filed a further request for a stay in February 2020, and the court granted the stay indefinitely. We intend to defend the lawsuit vigorously.

Claim Arising from the Omega Acquisition

On December 16, 2016, we and Perrigo Ireland 2 brought an arbitral claim ("Claim") against Alychlo NV ("Alychlo") and Holdco I BE NV (together the "Sellers") in accordance with clause 26.2 of the Share Purchase Agreement dated November 6, 2014 ("SPA") and the rules of the Belgian Centre for Arbitration and Mediation ("CEPANI"). Our Claim relates to the accuracy and completeness of information about Omega provided by the Sellers as part of the sale process, the withholding of information by the Sellers during that process and breaches of Sellers’ warranties. We are seeking monetary damages from the Sellers. The Sellers served their respective responses to the Claim on February 20, 2017. In its response, Alychlo has asserted a counterclaim for monetary damages contending that we breached a warranty in the SPA and breached the duty of good faith in performing the SPA. Alychlo subsequently filed papers seeking permission to introduce an additional counterclaim theory of recovery related to the Irish tax issues disclosed by the Company such that if the position of the Irish tax authorities prevails, Alychlo would have further basis for its counterclaim against Perrigo. In June 2019, the Tribunal denied permission for Alychlo to introduce the additional counterclaim and dismissed certain aspects of the original Alychlo counterclaim. There can be no assurance that our Claim will be successful, and the Sellers deny liability for the Claim. To the extent that aspects of Alychlo’s counterclaim survived the Tribunal’s ruling in June 2019, we deny that Alychlo is entitled to any relief (including monetary relief). The arbitration proceedings are confidential as required by the SPA and the rules of the CEPANI.

Other Matters

Our Board of Directors received a shareholder demand letter dated October 30, 2018 relating to the allegations in the securities cases and price fixing lawsuits described above. The letter demands that the Board of Directors initiate an action against certain current and former executives and Board members to recover damages allegedly caused to the Company. In response, the Company reminded the shareholder that any derivative claim can only proceed in accordance with Irish law, the law that governs the Company’s internal affairs. The shareholder responded that he would file a lawsuit asserting derivative claims.

On October 2, 2019, the shareholder filed a derivative action in the U.S. District Court for the District of New Jersey styled Krueger derivatively on behalf of nominal defendant Perrigo Company plc v. Alford, et al. The case was assigned to the same judge who is handling the Roofers' Pension Fund securities class action and related opt

out cases described above. In addition to the Company, the lawsuit names as defendants current Board members Alford, Classon, Karaboutis, Kindler, O’Connor, Parker, and Samuels, current CEO Kessler, former Board members Smith, Brlas, Cohen, Fouse, Hoffing, Jandernoa, Kunkle, and Morris, former CEO Hendrickson, former CEO Papa, former CFO Brown, former CFO Winowiecki, and former Executive Vice Presidents Boothe and Coucke. The lawsuit seeks to authorize the shareholder to pursue claims on behalf of the Company against all the individual defendants for breach of their fiduciary duties and for unjust enrichment, and against the current director defendants, former director Mr. Smith, and current CEO Mr. Kessler for violations of Exchange Act §§ 14(a) (proxy statement disclosures) and 29(b) (disgorgement as a result of alleged violations of § 14(a)). The complaint alleges that the following events indicate that the individuals in their respective capacities failed to exercise appropriate control over the management of the Company and made inadequate public disclosures concerning the integration of Omega after acquisition; the Company’s past and prospective organic growth; the defense against the Mylan 2015 tender offer; the alleged collusive pricing activities regarding generic prescription products; the accounting by the Company for the Tysabri® royalty stream; the 2018 Irish tax audit including potential liabilities for Irish taxes; and the April 2019 assertion of tax liabilities by the U.S. Internal Revenue Service (many of these factual events also underlie the securities cases discussed earlier in this Note 14). All defendants have filed motions to dismiss asserting various reasons to dismiss. Plaintiff filed his opposition in March 2020. Defendants’ replies in support of dismissal are due in late June 2020. We intend to defend the lawsuit vigorously.

Talcum Powder

The Company has been named, together with other manufacturers, in product liability lawsuits in state courts in Florida, Missouri and Illinois and in the Southern District of Mississippi alleging that the use of body powder products containing talcum powder causes mesothelioma and lung cancer due to the presence of asbestos. The Company has been named in 27 individual lawsuits seeking compensatory and punitive damages and has accepted a tender for a portion of the defense costs and liability from a retailer for one additional matter. The Company has not manufactured or sold talcum powder products since 1999. The Company has several defenses and intends to aggressively defend these lawsuits.   

Ranitidine

After regulatory bodies announced worldwide that ranitidine may potentially contain N-nitrosodimethylamine ("NDMA"), a known environmental contaminant, the Company promptly began testing its externally-sourced ranitidine API and ranitidine-based products. On October 8, 2019, the Company halted shipments of the product based upon preliminary results and on October 23, 2019, the Company made the decision to conduct a voluntary retail market withdrawal. As of April 29, 2020, the Company has been named in six product liability lawsuits in various federal courts alleging that plaintiffs developed various types of cancers or are placed at higher risk of developing cancer as a result of ingesting products containing ranitidine. The Company is named in these lawsuits with manufacturers of the national brand Zantac® and other manufacturers of ranitidine products and/or retailers. Some of the Company’s retailer customers are seeking indemnity from the Company for a portion of their defense costs and liability relating to these cases.  Plaintiffs seek compensatory and punitive damages, and in some instances seek applicable remedies under state consumer protection laws. In February 2020, federal actions involving Zantac and other ranitidine products were transferred for coordinated pretrial proceedings to a Multi-District Litigation (In re Zantac/Ranitidine Products Liability Litigation MDL No. 2924) in the U.S. District Court for the Southern District of Florida.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 28, 2020

Accounting Policies [Abstract]

Basis of presentation

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and footnotes included in our Annual Report on Form 10-K for the year ended December 31, 2019.

Principles of consolidation

all adjustments (consisting of normal recurring accruals and other adjustments) considered necessary for a fair presentation of the unaudited Condensed Consolidated Financial Statements have been included and include our accounts and the accounts of all majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Recently Issued Accounting Standards

Recent Accounting Standard Pronouncements

Below are recent Accounting Standard Updates ("ASU") that we are still assessing to determine the effect on our Condensed Consolidated Financial Statements. We do not believe that any other recently issued accounting standards could have a material effect on our Condensed Consolidated Financial Statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

Recently Issued Accounting Standards Not Yet Adopted
Standard	Description	Effective Date	Effect on the Financial Statements or Other Significant Matters
ASU 2018-14: Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans	This guidance amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other post-retirement plans.	December 31, 2020	We are currently evaluating the implications of adoption to related disclosures in our Consolidated Financial Statements.
ASU 2019-12: Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes	This guidance enhances and simplifies various aspects of the income tax accounting guidance in ASC 740.	January 1, 2021	We are currently evaluating the implications of adoption on our Consolidated Financial Statements.

Recently Adopted Accounting Standard Update

On January 1, 2020, we adopted ASU 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASC 326"), which replaces the incurred loss methodology with an expected loss methodology that is referred to as the Current Expected Credit Loss ("CECL") methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost.

We adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost, which includes trade receivables and contract assets. The cumulative effect of adopting ASC 326 was not material.

Allowance for Credit Losses

Expected credit losses on trade receivables and contract assets are measured collectively by geographic location. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and for reasonable and supportable forecasts. Historical credit loss experience provides the primary basis for estimation of expected credit losses. Adjustments to historical loss information may be made for significant changes in a geographic location’s economic conditions. Receivables that do not share risk characteristics are evaluated on an individual basis. These receivables are not included in the collective evaluation.

The allowance for credit losses is a valuation account that is deducted from the instruments’ cost basis to present the net amount expected to be collected. Trade receivables and contract assets are charged off against the allowance when the balance is no longer deemed collectible.

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Leases - Lease Cash Flow Classifications (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Leases [Abstract]
Operating cash flows for operating leases	$ 10.7	$ 11.7
Operating cash flows for finance leases	0.2	0.1
Financing cash flows for finance leases	1.0	0.7
Leased assets obtained in exchange for new finance lease liabilities	1.5	0.0
Leased assets obtained in exchange for new operating lease liabilities	$ 5.5	$ 4.7

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Derivative Instruments and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Millions	Mar. 28, 2020	Dec. 31, 2019
Designated derivatives:
Derivatives, Fair Value [Line Items]
Asset Derivatives	$ 16.7	$ 27.3
Designated derivatives: | Prepaid expenses and other current assets | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Asset Derivatives	5.3	1.0
Designated derivatives: | Prepaid expenses and other current assets | Cross-currency swap
Derivatives, Fair Value [Line Items]
Asset Derivatives	11.4	26.3
Designated derivatives: | Other accrued liabilities | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Liability Derivatives	10.9	4.7
Non-designated derivatives: | Prepaid expenses and other current assets | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Asset Derivatives	5.8	3.3
Non-designated derivatives: | Other accrued liabilities | Foreign currency forward contracts
Derivatives, Fair Value [Line Items]
Liability Derivatives	$ 2.8	$ 3.7

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Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 106.4	$ 63.9
Other comprehensive income (loss):
Foreign currency translation adjustments	(92.2)	(16.8)
Change in fair value of derivative financial instruments, net of tax	(9.4)	1.7
Change in post-retirement and pension liability, net of tax	(1.9)	(0.5)
Other comprehensive income (loss), net of tax	(103.5)	(15.6)
Comprehensive income	$ 2.9	$ 48.3

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Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Statement of Stockholders' Equity [Abstract]
Dividends paid (in dollars per share)	$ 0.23	$ 0.19

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Leases - Balance Sheet Location of Assets and Liabilities (Details) - USD ($) $ in Millions	Mar. 28, 2020	Dec. 31, 2019
Lessee, Lease, Description [Line Items]
Operating lease assets	$ 124.0	$ 129.9
Finance leases	27.9	27.6
Right-of-Use Asset	151.9	157.5
Present value of lease liabilities	152.7	158.2
Total operating lease liabilities	127.7	133.7
Total finance lease liabilities	25.0	24.5
Operating lease assets
Lessee, Lease, Description [Line Items]
Operating lease assets	124.0	129.9
Other non-current assets
Lessee, Lease, Description [Line Items]
Finance leases	27.9	27.6
Other accrued liabilities
Lessee, Lease, Description [Line Items]
Operating lease liability, current	30.9	32.0
Current indebtedness
Lessee, Lease, Description [Line Items]
Finance lease liability, current	5.7	3.4
Other noncurrent liabilities
Lessee, Lease, Description [Line Items]
Operating lease liability, noncurrent	96.8	101.7
Long-term debt, less current portion
Lessee, Lease, Description [Line Items]
Finance lease liability, noncurrent	19.3	21.1
CSCA
Lessee, Lease, Description [Line Items]
Operating lease assets	21.4	22.4
Finance leases	16.4	16.8
Total operating lease liabilities	21.5	22.8
Total finance lease liabilities	16.4	16.6
CSCI
Lessee, Lease, Description [Line Items]
Operating lease assets	39.3	41.6
Finance leases	5.7	5.8
Total operating lease liabilities	40.3	42.4
Total finance lease liabilities	2.7	2.9
RX
Lessee, Lease, Description [Line Items]
Operating lease assets	33.5	35.1
Finance leases	0.7	0.8
Total operating lease liabilities	34.7	36.3
Total finance lease liabilities	0.7	0.8
Unallocated
Lessee, Lease, Description [Line Items]
Operating lease assets	29.8	30.8
Finance leases	5.1	4.2
Total operating lease liabilities	31.2	32.2
Total finance lease liabilities	$ 5.2	$ 4.2

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Acquisitions (Details) - USD ($) $ in Millions	Feb. 13, 2020	Jan. 03, 2020
Steripod
Business Acquisition [Line Items]
Purchase price paid		$ 26.0
Brand | Dexsil
Business Acquisition [Line Items]
Intangible assets acquired	$ 8.0
Useful life of intangible assets	25 years
Brand | Steripod
Business Acquisition [Line Items]
Intangible assets acquired		$ 24.9
Useful life of intangible assets		25 years

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Revenue Recognition - Schedule of Revenue by Geographic Location (Details) - USD ($) $ in Millions		3 Months Ended
		Mar. 28, 2020	Mar. 30, 2019
Disaggregation of Revenue [Line Items]
Net sales	[1]	$ 1,341.0	$ 1,174.5
U.S.
Disaggregation of Revenue [Line Items]
Net sales	[1]	901.6	768.8
Europe
Disaggregation of Revenue [Line Items]
Net sales	[1],[2]	372.6	340.9
All other countries
Disaggregation of Revenue [Line Items]
Net sales	[1],[3]	66.8	64.8
Ireland
Disaggregation of Revenue [Line Items]
Net sales		$ 3.8	$ 5.2

[1] Derived from the location of the entity that sells to a third party.

[2] Includes Ireland net sales of $3.8 million and $5.2 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

[3] Includes net sales generated primarily in Israel, Mexico, Australia and Canada.

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Restructuring Charges (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019
Restructuring Charges [Abstract]
Restructuring charges	$ 0.0	$ 9.3
Restructuring Reserve [Roll Forward]
Beginning balance	19.6	24.0
Additional charges	0.0	5.9
Payments	(3.5)	(9.0)
Non-cash adjustments	(0.1)	(0.4)
Ending balance	$ 16.0	$ 20.5

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Earnings Per Share and Shareholders' Equity (Details) - USD ($) shares in Millions	3 Months Ended
	Mar. 28, 2020	Mar. 30, 2019	Oct. 31, 2018
Numerator:
Net income	$ 106,400,000	$ 63,900,000
Denominator:
Weighted average shares outstanding for basic EPS	136.2	135.9
Dilutive effect of share-based awards (in shares)	1.1	0.3
Weighted average shares outstanding for diluted EPS	137.3	136.2
Anti-dilutive share-based awards excluded from computation of diluted EPS (shares)	1.7	2.1
Stock repurchase program, authorized amount			$ 1,000,000,000.0
Repurchases of ordinary shares (shares)	0.0	0.0

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Inventories (Details) - USD ($) $ in Millions	Mar. 28, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Finished goods	$ 485.8	$ 530.3
Work in process	188.8	186.9
Raw materials	256.2	250.1
Total inventories	$ 930.8	$ 967.3

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Fair Value Measurements - Schedule of Fixed Rate Long-term Debt (Details) - USD ($) $ in Millions	Mar. 28, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Public bonds	$ 2,750.5	$ 2,751.4
Public Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Public bonds	2,482.5	2,618.4
Private placement note | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Private placement note	153.6	168.4
Reported Value Measurement | Public Bonds | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Public bonds	2,600.0	2,600.0
Reported Value Measurement | Private placement note | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Private placement note	$ 150.5	$ 151.4

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Earnings Per Share and Shareholders' Equity (Tables)

3 Months Ended

Mar. 28, 2020

Earnings Per Share [Abstract]

Schedule of Earnings per Share, Basic and Diluted

A reconciliation of the numerators and denominators used in the basic and diluted earnings per share ("EPS") calculation is as follows (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Numerator:
Net income	$	106.4	$	63.9
Denominator:
Weighted average shares outstanding for basic EPS	136.2		135.9
Dilutive effect of share-based awards	1.1		0.3
Weighted average shares outstanding for diluted EPS	137.3		136.2
Anti-dilutive share-based awards excluded from computation of diluted EPS	1.7		2.1

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Investments (Tables)

3 Months Ended

Mar. 28, 2020

Investments [Abstract]

Equity Securities

The following table summarizes the measurement category, balance sheet location, and balances of our equity securities (in millions):

Measurement Category	Balance Sheet Location	March 28, 2020		December 31, 2019
Fair value method	Prepaid expenses and other current assets	$	3.7	$	6.6
Fair value method(1)	Other non-current assets	$	2.3	$	2.3
Equity method	Other non-current assets	$	18.5	$	17.8

(1) Measured at fair value using the Net Asset Value practical expedient.

Equity Security Expense (Income)

The following table summarizes the expense (income) recognized in earnings of our equity securities (in millions):

		Three Months Ended
Measurement Category	Income Statement Location	March 28, 2020			March 30, 2019
Fair value method	Other (income) expense, net	$	2.9		$	6.1
Equity method	Other (income) expense, net	$	(0.7	)	$	(0.7	)

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Indebtedness

3 Months Ended

Mar. 28, 2020

Debt Disclosure [Abstract]

Indebtedness

INDEBTEDNESS

Total borrowings outstanding are summarized as follows (in millions):

			March 28, 2020			December 31, 2019
Revolving Credit Agreement
	2018 Revolver due March 8, 2023		$	100.0		$	—
Term loan
	2019 Term loan due August 15, 2022		600.0			600.0
Notes and Bonds
	Coupon	Due
	3.500%	March 15, 2021	280.4			280.4
	3.500%	December 15, 2021	309.6			309.6
	5.105%	July 28, 2023(1)	150.5			151.4
	4.000%	November 15, 2023	215.6			215.6
	3.900%	December 15, 2024	700.0			700.0
	4.375%	March 15, 2026	700.0			700.0
	5.300%	November 15, 2043	90.5			90.5
	4.900%	December 15, 2044	303.9			303.9
	Total notes and bonds		2,750.5			2,751.4
Other financing			27.1			24.6
Unamortized premium (discount), net			6.5			7.3
Deferred financing fees			(13.4		)	(14.1		)
Total borrowings outstanding			3,470.7			3,369.2
	Current indebtedness		(287.8		)	(3.4		)
Total long-term debt less current portion			$	3,182.9		$	3,365.8

(1) Debt denominated in euros subject to fluctuations in the euro-to-U.S. dollar exchange rate.

We are in compliance with all covenants under our debt agreements as of March 28, 2020.

Revolving Credit Agreements

On March 8, 2018, we entered into a $1.0 billion revolving credit agreement maturing on March 8, 2023 (the "2018 Revolver"). There were $100.0 million of borrowings outstanding under the 2018 Revolver as of March 28, 2020. There were no borrowings outstanding under the 2018 Revolver as of December 31, 2019.

Term Loans

On March 8, 2018, we refinanced the €350.0 million outstanding under the previous term loan with the proceeds of a new €350.0 million ($431.0 million) term loan, maturing on March 8, 2020 (the "2018 Term Loan"). During the year ended December 31, 2019, we made $24.7 million in scheduled principal repayments on the 2018 Term Loan.

On August 15, 2019, we refinanced the €284.4 million ($317.1 million) outstanding under the 2018 Term Loan with the proceeds of a new $600.0 million term loan (the "2019 Term Loan"), maturing on August 15, 2022.

Other Financing

We have overdraft facilities available that we use to support our cash management operations. We report any balances outstanding in the above table under "Other financing". The balance outstanding under the facilities was $2.0 million as of March 28, 2020. There were no borrowings outstanding under the facilities as of December 31, 2019.

We have financing leases that are reported in the above table under "Other financing" (refer to Note 9).

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Revenue Recognition

3 Months Ended

Mar. 28, 2020

Revenue from Contract with Customer [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Revenue is recognized when or as a customer obtains control of promised products. The amount of revenue recognized reflects the consideration we expect to be entitled to receive in exchange for these products.

Disaggregation of Revenue

We generated net sales in the following geographic locations⁽¹⁾ (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
U.S.	$	901.6	$	768.8
Europe(2)	372.6		340.9
All other countries(3)	66.8		64.8
Total net sales	$	1,341.0	$	1,174.5

(1) Derived from the location of the entity that sells to a third party.

(2) Includes Ireland net sales of $3.8 million and $5.2 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

(3) Includes net sales generated primarily in Israel, Mexico, Australia and Canada.

Product Category

We re-aligned our product categories in our CSCA and CSCI segments as of December 31, 2019. The re-alignment standardizes our categories and product level detail to provide consistency. This transformative step will optimize the way in which management reports and evaluates our business.

The following is a summary of our net sales by category (in millions); the comparative period reflects the product category re-alignment:

	Three Months Ended
	March 28, 2020		March 30, 2019
CSCA(1)
Upper respiratory	$	154.6	$	132.8
Pain and sleep-aids	120.4		91.3
Digestive health	106.9		102.3
Nutrition	102.2		99.6
Healthy lifestyle	85.8		76.0
Oral self-care	55.3		—
Skincare and personal hygiene	46.7		45.5
Vitamins, minerals, and supplements	6.4		6.3
Animal health	—		19.6
Other CSCA(2)	22.3		8.4
Total CSCA	700.6		581.8
CSCI
Skincare and personal hygiene	94.7		101.9
Upper respiratory	84.1		71.9
Vitamins, minerals, and supplements	48.5		45.8
Pain and sleep-aids	46.8		40.4
Healthy lifestyle	43.6		47.3
Oral self-care	23.2		1.6
Digestive health	6.0		7.2
Other CSCI(3)	35.8		34.7
Total CSCI	382.7		350.8
RX	257.7		241.9
Total net sales	$	1,341.0	$	1,174.5

(1)    Includes net sales from our OTC contract manufacturing business.

(2) Consists primarily of diagnostic products and other miscellaneous or otherwise uncategorized product lines and markets, none of which is greater than 10% of the segment net sales.    

(3) Consists primarily of liquid licensed products, our distribution business and other miscellaneous or otherwise uncategorized product lines and markets, 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 $49.5 million and $67.3 million for the three months ended March 28, 2020 and March 30, 2019, respectively.

We also recognize a portion of the store brand OTC product revenues in the CSCA segment on an over time basis; however, the timing difference between over time and point in time revenue recognition for store brand contracts is not significant due to the short time period between the customization of the product and shipment or delivery.

Contract Balances

The following table provides information about contract assets from contracts with customers (in millions):

	Balance Sheet Location	March 28, 2020		December 31, 2019
Short-term contract assets	Prepaid expenses and other current assets	$	28.1	$	26.3

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Fair Value Measurements

3 Months Ended

Mar. 28, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

On January 1, 2020, we adopted ASU 2018-13: Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The amendments in this ASU remove disclosure requirements in Topic 820 related to the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, the policy for timing of transfers between levels, and the valuation processes for Level 3 fair value measurements. Additionally, the ASU adds disclosure requirements for the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We have amended certain of our quantitative Level 3 fair value measurement disclosures to add the range and weighted average of significant unobservable inputs used.

The table below summarizes the valuation of our financial instruments carried at fair value by the applicable pricing categories (in millions):

	March 28, 2020						December 31, 2019
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Measured at fair value on a recurring basis:
Assets:
Investment securities	$	3.7	$	—	$	—	$	6.6	$	—	$	—
Foreign currency forward contracts	—		11.1		—		—		4.3		—
Cross-currency swap	—		11.4		—		—		26.3		—
Funds associated with Israeli severance liability	—		13.6		—		—		14.6		—
Royalty Pharma contingent milestone	—		—		96.9		—		—		95.3
Total assets	$	3.7	$	36.1	$	96.9	$	6.6	$	45.2	$	95.3
Liabilities:
Foreign currency forward contracts	$	—	$	13.7	$	—	$	—	$	8.4	$	—
Contingent consideration payments	—		—		13.0		—		—		11.9
Total liabilities	$	—	$	13.7	$	13.0	$	—	$	8.4	$	11.9
Measured at fair value on a non-recurring basis:
Assets:
Goodwill(1)	$	—	$	—	$	—	$	—	$	—	$	1,013.1
Definite-lived intangible assets(2)	—		—		—		—		—		23.3
Total assets	$	—	$	—	$	—	$	—	$	—	$	1,036.4

(1) During the year ended December 31, 2019, goodwill with a carrying amount of $1,122.3 million was written down to a fair value of $1,013.1 million.

(2) During the year ended December 31, 2019, definite-lived intangible assets with a carrying amount of $55.3 million were written down to a fair value of $23.3 million.

There were no transfers within Level 3 fair value measurements during the three months ended March 28, 2020 or the year ended December 31, 2019.

Royalty Pharma Contingent Milestone Receipts

The table below summarizes the change in fair value of the Royalty Pharma contingent milestone (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Beginning balance	$	95.3	$	323.2
Payments received	—		(250.0		)
Change in fair value	1.6		10.4
Ending balance	$	96.9	$	83.6

We value our contingent milestone payment from Royalty Pharma using a modified Black-Scholes Option Pricing Model ("BSOPM"). Key inputs in the BSOPM are the estimated volatility and rate of return of royalties on global net sales of Tysabri^® that are received by Royalty Pharma until the contingent milestones are resolved. As of March 28, 2020, volatility and the estimated fair value of the milestones had a positive relationship such that higher volatility translates to a higher estimated fair value of the contingent milestone payments. Rate of return and the estimated fair value of the milestones had an inverse relationship, such that a lower rate of return correlates with a higher estimated fair value of the contingent milestone payments. We assess volatility and rate of return inputs quarterly by analyzing certain market volatility benchmarks and the risk associated with Royalty Pharma achieving the underlying projected royalties. The table below represents the volatility and rate of return:

	Three Months Ended
	March 28, 2020		March 30, 2019
Volatility	35.0	%	30.0	%
Rate of return	7.29	%	8.02	%

During the three months ended March 28, 2020 the fair value of the Royalty Pharma contingent milestone payment related to 2020 increased by $1.6 million to $96.9 million, which is recorded on the Condensed Consolidated Balance Sheets within Prepaid expenses and other current assets. The adjustment was driven by higher volatility, higher projected global net sales of Tysabri^® compared to the estimates in the prior period, and the estimated probability of achieving the earn-out. During the three months ended March 30, 2019 the fair value of the Royalty Pharma contingent milestone payments increased by $10.4 million driven by higher projected global net sales of Tysabri^® and the estimated probability of achieving the earn-out.

The Royalty Pharma payments from Biogen for Tysabri^® were $337.5 million in 2018, which triggered the $250.0 million milestone payment received during the first quarter of 2019. There is no contingent milestone based on 2019 sales of Tysabri^®. In order for us to receive the remaining contingent milestone payment of $400.0 million, Royalty Pharma payments from Biogen for Tysabri^® sales in 2020 must exceed $351.0 million. If Royalty Pharma payments from Biogen for Tysabri^® sales do not meet the prescribed threshold in 2020, we will write off the $96.9 million asset and record a loss. If the prescribed threshold is exceeded, we will increase the asset to $400.0 million and recognize income of $303.1 million in Change in financial assets on the Condensed Consolidated Statements of Operations.

Contingent Consideration Payments

The table below summarizes the change in fair value of contingent consideration payments (in millions):

	Three Months Ended
	March 28, 2020		March 30, 2019
Beginning balance	$	11.9	$	15.3
Changes in value	1.1		1.2
Settlements and other adjustments	—		(4.1		)
Ending balance	$	13.0	$	12.4

Contingent consideration represents milestone payment obligations obtained through product acquisitions, which are valued using estimates based on probability-weighted outcomes, sensitivity analysis, and discount rates reflective of the risk involved. The estimates are updated quarterly and the liabilities are adjusted to fair value depending on a number of assumptions, including the competitive landscape and regulatory approvals that may impact the future sales of a product.

As of March 28, 2020, the contingent consideration payments liability was primarily comprised of sales-based milestones related to an IPR&D asset acquired in a prior transaction in our RX segment. The contingent consideration payments liability also included certain event-based milestones, which were immaterial. The fair value of our contingent consideration sales-based milestones as of March 28, 2020, was calculated using the following significant unobservable inputs:

			Three Months Ended
			March 28, 2020
	Valuation Technique	Unobservable Input	Range (Weighted Average)(1)
Contingent consideration payments: sales-based milestones	Discounted cash flow	Projected royalties	$	105.0
		Projected year of payment of sales-based milestones	2020 - 2035 (2028)
		Discount rate	52.5		%

(1) Unobservable inputs were weighted based on the relative estimated milestone payments.

The discount rate of 52.5% was based on our assessment of the rate of return and development and commercialization risk of the related IPR&D project. We reevaluate the significant unobservable inputs of the sales-based milestones quarterly based on project developments and changes in contingent elements of the liability.

Fixed Rate Long-term Debt    

Our fixed rate long-term debt consisted of the following (in millions):

	March 28, 2020				December 31, 2019
	Level 1		Level 2		Level 1		Level 2
Public Bonds
Carrying Value (excluding discount)	$	2,600.0	—		$	2,600.0	—
Fair value	$	2,482.5	—		$	2,618.4	—
Private placement note
Carrying value (excluding premium)	—		$	150.5	—		$	151.4
Fair value	—		$	153.6	—		$	168.4

The fair values of our public bonds for all periods were based on quoted market prices. The fair values of our private placement note for all periods were based on interest rates offered for borrowings of a similar nature and remaining maturities.

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.