Company: PRMB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-049952
Chunk: 185

Company: Primo Brands Corp
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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September 30, 2025Nine Months EndedSeptember 30, 2025Foreign exchange contractsAmount excluded from the assessment of effectiveness 1$(4.4)$(5.8)______________________1 Amount is net of tax impact of $1.5 million and $2.0 million for the three and nine months ended September 30, 2025, respectively.Other than the settlement of the 2024 FX Forwards described above, there were no settlements of the Company's foreign exchange contracts during the three and nine months ended September 30, 2025.Economic (Non-Designated) Hedging StrategyIn addition to derivative instruments that have been designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges of commodity exposure. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in the fair values of economic hedges are immediately recognized in earnings.As of September 30, 2025, the fair value of the Company's commodity forwards were short-term liabilities of $1.2 million recorded in Accruals and other current liabilities, and long-term liabilities of $0.3 million recorded in Other non-current liabilities on the Condensed Consolidated Balance Sheets.

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As of December 31, 2024, the fair value of the Company's commodity forwards were liabilities of $5.4 million recorded in Accruals and other current liabilities on the Condensed Consolidated Balance Sheets.The change in fair value of the commodity forwards is reflected within Other operating (income) expense, net in the Condensed Consolidated Statements of Operations.

NOTE 14—FAIR VALUE MEASUREMENTS 

The following tables summarize the fair values of financial instruments:September 30, 2025($ in millions)TotalLevel 1Level 2Level 3Financial Assets:Money market investments$14.1 $14.1 $— $— Split-dollar life insurance policies24.8 — 24.8 — Foreign exchange contracts14.7 — 14.7 — Commodity forwards0.7 — — 0.7 $54.3 $14.1 $39.5 $0.7 Financial Liabilities:Commodity forwards$2.2 $— $— $2.2 $2.2 $— $— $2.2