Company: PRMB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0002042694-25-000007
Chunk: 124

Company: Primo Brands Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 124
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 to estimate a loss or range of loss in this matter.Purchase CommitmentsThe Company may enter into unconditional purchase obligations with third party suppliers in the ordinary course of business. Such arrangements are entered into to secure subscriptions, utilities, services and supplies vital to the Company's operations and ability to serve its customers. The Company has various long-term supply and service contracts which may require that the Company purchase minimum quantities, for a minimum term, at fixed or variable rates.Letters of CreditAs of March 31, 2025, the Company had $138.5 million of letters of credit outstanding.

NOTE 17—RELATED PARTY TRANSACTIONS

Investors, along with their associated management of the Company, provided various advisory services. In exchange for these services, the Company pays management fees to the related parties under the Management Agreements entered into at the time of the Nestlé Acquisition. Additionally, the Company has supply agreements with related parties.For the three months ended March 31, 2025 and 2024, the Company recorded expenses associated with management fees and associated costs under the Management Agreements totaling nil and $9.3 million, respectively, which were included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. For the three months ended March 31, 2025 and 2024, the Company purchased $8.6 million and $6.9 million, respectively, of raw materials used in the production process from a related party, which were recorded as a component of Cost of sales  in the Condensed Consolidated Statement of Operations. As of March 31, 2025 and December 31, 2024, the Company recorded an associated payable of $1.4 million and $2.1 million, respectively, related to the unpaid portion of these purchases.For the three months ended March 31, 2025 and 2024, the Company recorded expense associated with a related party of $0.3 million and nil, respectively, for consultancy services which were included in Selling, general and administrative expenses in the Condensed Consolidated Statements of Operations. As of March 31, 2025 and December 31, 2024, the Company recorded an associated accrued expense of $0.1 million and $0.2 million, respectively, which is included in Accruals and other current liabilities in the Condensed Consolidated Balance Sheets. Substantially concurrently with the Secondary Offering, the Company completed the Share Repurchase as detailed in Note 7 - "