Company: PRMB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0002042694-25-000003
Chunk: 151

Company: Primo Brands Corp
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 151
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 right-of-use assets(169.1)(137.6)Debt discounts and derivatives(7.9)—Other(4.4)(0.9)Total deferred tax liabilities$(1,201.2)$(688.6)Valuation allowance(49.8)—Net deferred tax liability$(738.7)$(397.0)As of December 31, 2024, the Company has outside tax basis differences, including undistributed earnings, in its subsidiaries. For 2024, deferred taxes have not been recorded on the undistributed earnings because the Company's subsidiaries have the ability to repatriate funds to their respective parent company tax-efficiently or the undistributed earnings are indefinitely reinvested under the accounting guidance. In order to arrive at this conclusion, the Company considered factors including, but not limited to, past experience, domestic cash requirements, cash requirements to satisfy the ongoing operations, capital expenditures and other financial obligations of its subsidiaries. It is not practicable to determine the excess book basis over outside tax basis in the shares or the amount of incremental taxes that might arise if these earnings were to be remitted. The amount of tax payable could be significantly impacted by the jurisdiction in which a distribution was made, the amount of the distribution, foreign withholding taxes under applicable tax laws when distributed, relevant tax treaties and foreign tax credits.As of December 31, 2024, the Company has U.S. federal net operating loss ("NOL") carryforwards of $17.5 million, which begin expiring in 2037. As of December 31, 2024, the Company has U.S. federal NOL carryforwards of $36.4 million which have indefinite lives. As of December 31, 2024, the Company has state NOL carryforwards in the amount of $8.2 million, which begin expiring in 2025.  As of December 31, 2024, the Company has Canadian NOL carryforwards of $123.3 million, which begin expiring in 2025. The Company has United Kingdom NOL carryforwards of $1.0 million which have indefinite lives. The Company's U.S. NOL carryforwards are subject to annual limitations in their use in accordance with IRC section 382.As of December 31, 2024, the Company has capital loss carryforwards of $1.6 million primarily in Canada which have indefinite lives.In evaluating the ability to recover the deferred tax