Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 133

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 133
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 of Crystal Rock (collectively, the “Primo Water Trademarks”). These assets had an aggregate net book
value of $379.7 million as of December 30, 2023.

Primo Water assessed qualitative factors to determine whether the existence of
events or circumstances indicated that it was more likely than not that the fair value of the Primo Water Trademarks were less than their respective carrying value. The qualitative factors Primo Water assessed included macroeconomic conditions,
industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial performance compared with forecasted projections in prior periods, and other relevant events, the impact of which are
all significant judgments and estimates. During the fourth quarter of 2023, Primo Water concluded that it was more likely than not that the fair value of the Primo Water Trademarks were more than their carrying value and therefore Primo Water was
not required to perform any additional testing.

There are inherent uncertainties related to each of the above listed assumptions, and
Primo Water’s judgment in applying them. Changes in the assumptions used in Primo Water’s qualitative assessment could result in impairment charges that could be material to its Consolidated Financial Statements in any given period.

Refer to Note 2 to Primo Water’s Consolidated Financial Statements for discussion regarding intangible assets for the discontinued
operations entities.

Other Intangible Assets

As of December 30, 2023, Primo Water’s intangible assets subject to amortization, net of accumulated amortization, were
$333.0 million, consisting principally of $310.7 million of customer relationships that arose

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from acquisitions, $13.8 million of software, and $5.9 million of patents. Customer relationships are typically amortized over the period for which Primo Water expects to receive the
economic benefits. The customer relationship intangible assets acquired in Primo Water’s acquisitions are amortized over the expected remaining useful life of those relationships on a basis that reflects the pattern of realization of the
estimated undiscounted after-tax cash flows. Primo Water reviews the estimated useful life of these intangible assets annually, unless a review is required more frequently due to a triggering event, such as a
loss of a significant customer. Primo Water reviews of the estimated useful life takes into consideration the specific net cash flows related to the intangible asset. The permanent loss of, or significant decline in sales to customers included in
the intangible asset would result in either an impairment in the