Company: PRMB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0002042694-25-000003
Chunk: 155

Company: Primo Brands Corp
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 155
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 and 2022.As of December 31, 2024, the unrecognized share-based compensation expense and the weighted-average number of years over which the expense will be recognized were as follows:(in millions of U.S. dollars, except years)Unrecognized stock-based compensation expenseWeighted-average years expected to recognize expensePerformance-based RSUs$20.2 2.9Time-based RSUs27.0 1.5Other awards1.8 1.9Total$49.0 The grant date fair value of the Performance-based PIUs was $2.7 million. As of December 31, 2024, the achievement of the performance condition was not considered probable, and therefore no expense has been recorded and no unrecognized stock-based compensation related to these awards was included in the table above.Stock OptionsIn connection with the Transaction during the year ended December 31, 2024, the Company granted 1,194,877 stock options as replacement awards for the outstanding awards held by Primo Water employees with a weighted-average exercise price of $14.31 per share. The stock options received the same terms and conditions as immediately prior to the Transaction, including the stock option exercise price. The weighted-average fair value of the replacement stock options granted was estimated to be $10.61 per share using the Black-Scholes option pricing model. The contractual term of a stock option is fixed by the Legacy Equity Plans and cannot exceed ten years from the original grant date.

F-35

The fair value of the replacement stock options during the year ended December 31, 2024 was estimated on the date of acquisition using the Black-Scholes option pricing model utilizing the following range of assumptions:December 31, 2024Risk-free interest rate4.2% - 4.7%Average expected life (years)0.1 - 3.0Expected volatility23.4% - 29.2%Expected dividend yield1.5 %The following table summarizes the activity for stock options for the periods presented:Number of Stock options (in thousands)Weighted-average exercise priceWeighted-average contractual term (years)Aggregate intrinsic value (in thousands)Outstanding as of December 31, 2023—$— —$—Replacement awards in conjunction with the Transaction1,195$14.31 Exercised(127)$15.05 $1,810.8Outstanding as of December 31, 20241,068$14.21 3.6