Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 354

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 354
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 (66.1 | ) |
| Intangible assets                |                               |   |            (151.1 | ) |     |   |            (154.0 | ) |
| Right of use assets              |                               |   |             (37.4 | ) |     |   |             (40.6 | ) |
| Other                            |                               |   |              (3.7 | ) |     |   |              (2.5 | ) |
|                                  |                               |   |            (246.2 | ) |     |   |            (263.2 | ) |
| Valuation allowance              |                               |   |            (131.6 | ) |     |   |            (115.5 | ) |
| Net deferred tax liability       |                               | $ |            (144.0 | ) |     | $ |            (142.2 | ) |

As of December 30, 2023, we have outside tax basis differences, including undistributed earnings, in our foreign subsidiaries. For 2023, deferred taxes have not been recorded on the undistributed earnings because our foreign subsidiaries have the ability to repatriate funds to their respective parent company tax-efficientlyor the undistributed earnings are indefinitely reinvested under the accounting guidance. In order to arrive at this conclusion, we 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 our 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. We repatriated earnings of $87.3 million and $17.0 million to Canada during the fiscal years ended December 30, 2023 and December 31, 2022, respectively, incurring no tax expense. As of December 30, 2023, we have operating loss carryforwards totaling $411.5 million, capital loss carryforwards totaling $67.0 million, and tax credit carryforwards totaling nil. The operating loss carryforward amount was attributable to Canadian operating loss carryforwards of $302.3 million that will expire from 2024 to 2043; U.S