Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 304

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 304
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0 | ) |
| Lease right-of-use                                   
 assets                                               |     |              | (137.6 | ) |     |      | (135.0 | ) |
| Other                                                |     |              |   (0.9 | ) |     |      |   (1.1 | ) |
| Total deferred tax liabilities                       |     | $            | (688.6 | ) |     | $    | (687.1 | ) |
| Net deferred tax liability                           |     | $            | (397.0 | ) |     | $    | (437.5 | ) |

The primary differences from the U.S. statutory rate to the effective rate for both years ended December 31, 2023 and 2022 (Successor) were state tax expense and the utilization of research and development tax credits. The difference for the period ended December 31, 2021 (Successor) was state tax expense and permanent differences related to transaction costs. As of December 31, 2023, the Company has no U.S. federal net operating losses (“NOL”) carryforward. However, as of December 31, 2023, the Company does have state NOL carryforwards in the amount of $11.9 million, all of which will expire between 2024 and 2042. As of December 31, 2023, the Company has Canadian NOL carryforwards of $19.5 million, which will begin expiring in 2042. The Company’s U.S. NOL carryforwards are subject to annual limitations in their use in accordance with IRC section 382. In evaluating the ability to recover the deferred tax assets within the jurisdiction from which they arise, the Company considers all positive and negative evidence, including the scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent operating results. Based on these considerations, the Company has not recorded a valuation allowance as of December 31, 2023. F-37

Unrecognized income tax benefits represent positions taken on income tax returns, but not yet recognized in
the consolidated financial statements. The Company recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. As of December 31, 2023, the Company has recorded a reserve of $1.2 million related to
nexus positions in various state jurisdictions. The Company is subject to taxation in the United States, various states, and Canada. As of December 31