Company: PRMB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0002042694-25-000003
Chunk: 165

Company: Primo Brands Corp
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 165
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 hedge foreign exchange risk associated with the Company's 3.875% Senior Notes. 

F-41

The Company designated the foreign exchange contracts as fair value hedges. The foreign exchange contracts are recognized in the Consolidated Balance Sheets at fair value and changes in the fair value of the foreign exchange contracts are recorded in the same line as the hedged item, which is Other operating expense, net in the Consolidated Statements of Operations. The Company excludes forward points from its assessment of hedge effectiveness and amortizes them on a straight-line basis over the life of the hedging instruments in Other operating expense, net in the Consolidated Statements of Operations. The difference between fair value changes of the excluded component and the amount amortized to Other operating expense, net is recorded as a component of AOCI on the Consolidated Balance Sheets.The following amount was recorded on the Consolidated Balance Sheets related to hedged items as of December 31, 2024:($ in millions)December 31, 2024Line Item in Consolidated Balance Sheets in Which the Hedged Item Is IncludedCarrying Amount of the Hedged LiabilityLong-term debt, less current portion 1$468.7 ______________________1    Carrying amount excludes unamortized debt discount as of December 31, 2024.The fair value of the Company's derivative liabilities included in Accruals and other current liabilities as of December 31, 2024 was as follows:($ in millions)December 31, 2024Derivative ContractLiabilitiesForeign exchange contracts$36.0 The amount of gains or (losses) recognized in Other operating expense, net in the Consolidated Statements of Operations for fair value hedging relationships, presented on a pre-tax basis, for the year ended December 31, 2024 is shown in the table below:($ in millions)December 31, 2024Foreign exchange contractsHedged item$15.9 Derivative designated as hedging instrument$(15.9)Amount reclassified from AOCI to expense (amortized)$(1.4)The amount of gains or (losses), net of tax, recognized in the Company's Consolidated Statements of Comprehensive Income (Loss) for fair value hedging relationships for the year ended December 31, 2024 is shown in the table below:($ in millions)December 31, 2024Foreign exchange contractsAmount excluded from the assessment of effectiveness 1$(0.7)______________________1