Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 270

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 270
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 indicative of the

F-19

results of operations or cash flows of NWNA if it had operated independently of Nestlé S.A. Historically, NWNA has been managed and operated in the normal course of business consistent
with other businesses of Nestlé S.A.

The Predecessor Statement of Operations includes all revenues and costs directly attributable to NWNA as well
as an allocation of general service and administrative functional expenses from Nestlé S.A. Nestlé S.A. allocated these costs to NWNA using methodologies it believes are appropriate and reasonable, including percentage of sales, cost
of sales, volume sold and headcount.

The accompanying Consolidated Financial Statements have been prepared in accordance with accounting principles
generally accepted in the United States of America (“U.S. GAAP”). The Consolidated Financial Statements are presented in U.S. dollars, which represent the Company’s reporting currency. Unless otherwise noted, dollars are in millions.

Foreign Currency Translation

The financial
statements of the Company’s foreign subsidiary, where the local currency is the functional currency, are translated using exchange rates in effect at the end of the year for assets and liabilities and average exchange rates during the year for
results of operations. The resulting foreign currency translation adjustment is included in shareholders’ equity as a component of accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate
fluctuations on transactions denominated in a currency other than the functional currency are included in other operating expense, net and were insignificant for all periods presented.

Estimates

The preparation of the Consolidated
Financial Statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date and the
amounts of revenues and expenses during the year. Actual results could differ from those estimates. Such estimates include those related to sales incentives recorded against revenue, valuation of assets and liabilities in connection with
acquisitions, collectability of trade receivables, self-insurance reserve, inventory obsolescence expense, realizability of income taxes, useful lives of property, plant and equipment and intangible assets, fair value of reporting units in
connection with the annual goodwill and indefinite lived intangible assessments and the incremental borrowing rate related to lease obligations.

Revenue Recognition

The Company’s principal
source of revenue is bottled water sales to customers primarily in the United States and Canada. Revenue is recognized when a customer obtains control of promised goods (the obligation), which may be upon shipment of