Company: PRMB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0002042694-25-000003
Chunk: 135

Company: Primo Brands Corp
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 135
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, furniture, information technology and sundry equipment625.8 410.9 Construction in progress105.4 124.0 Leasehold improvements61.3 48.2 Land162.3 76.8 Vehicles260.0 72.2 Less: Accumulated depreciation(971.8)(766.4)Total property, plant and equipment, net$2,083.9 $1,609.2 Depreciation expense related to property, plant and equipment for the years ended December 31, 2024, 2023, and 2022 was $250.0 million, $231.8 million and $256.9 million, respectively. Additions to property plant and equipment during the year ended December 31, 2024 and  2023 include capitalized interest of $4.8 million and $11.4 million, respectively.

F-21

Included in Cost of sales in the Consolidated Statement of Operations during the year ended December 31, 2023 is a charge related to the write off of property, plant and equipment of $9.8 million.

NOTE 8—LEASES

The Company’s leasing activities consist of operating and finance leases for land, buildings, offices and warehouse space, vehicles, certain machinery and equipment, tools, furniture and other equipment. The lease term used for calculating RoU assets and lease obligations is determined by considering the non-cancelable lease term and options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The determination to include or exclude option periods is generally made by considering the activity in the region for the underlying asset corresponding to the respective lease, among other contract-based and market-based factors. Some of the Company’s leases contain variable payments for utilities, insurance, real estate tax, repairs and maintenance, and other variable operating expenses. Such amounts are not included in the measurement of the lease obligation and are recognized in the period when the items are incurred.The following table presents the components of lease costs in the Consolidated Statements of Operations for the periods presented:For the Year Ended December 31,($ in millions)202420232022Operating lease expense$116.7$119.5$104.7Short-term and variable lease expense18.817.220.0Finance lease related expense:Depreciation expense9.00.5—Interest on lease liabilities2.30.1—Total lease expense$146.8