Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 284

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 284
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 up approximately 30% of trade receivables, net and 25% of net sales. As of, and for the year ended, December 31, 2022 (Successor) there was one customer who made up approximately 25% of both trade receivables, net and net sales. For the period February 3, 2021 to December 31, 2021 (Successor), there was one customer who made up approximately 30% of net sales. No other individual customer makes up more than 10% of trade receivables, net or net sales. Inventories All inventories are valued at the lower of cost calculated using the average cost method or net realizable value. Finished goods and semi-finished goods include the inventory costs of raw materials, direct labor and manufacturing overhead costs. The Company establishes an inventory reserve to adjust inventory costs down to a net realizable value and to reserve for estimated obsolescence of both raw materials and finished goods. Factors influencing these adjustments include the aging of inventories on hand, along with a comparison to estimated future usage, sales and related sales price. F-22

Property, Plant and Equipment, net Property, plant and equipment, net are stated at cost less accumulated depreciation. Depreciation is recorded on a straight-line basis over an asset’s estimated useful life as follows:

| Type of Asset                                                 |     | Useful Life                             |
| Land                                                          |     | N/A                                     |
| Buildings                                                     |     | 20 - 61 years                           |
| Machinery and equipment                                       |     | 10 - 25 years                           |
| Leasehold improvements                                        |     | The lesser of useful life or lease term |
| Tools, furniture, information technology and sundry equipment |     | 3 - 18 years                            |
| Vehicles                                                      |     | 3 - 10 years                            |

Construction in progress is not depreciated until the individual asset is ready for service. Maintenance and repairs are charged to operating expense when incurred; additions and improvements that expand the functionality or increase the useful life of the asset are capitalized. Impairment of Long-Lived Assets Long-lived assets consist primarily of property, plant and equipment, right-of-use(“RoU”) assets and definite-lived intangible assets. The Company reviews the carrying amount of a long-lived asset or asset group when there is an indication of impairment. Impairment indicators include a significant decrease in the market price, a significant adverse change in the manner in which an asset or asset group is being