Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 62

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 62
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 net operating loss carryforwards
attributable to Primo Water are subject to pre-existing limitations under Section 382 of the Code that were triggered before any additional limitations arising in connection with the Transaction. We estimate those pre-existing limitations to result
in a limit on the utilization of net operating losses of Primo Water of approximately $6.3 million for the period from November 8, 2024 to December 31, 2024, of approximately $15.9 million for 2025, and of approximately $9.7 million for 2026
through 2029. Although we expect that an additional “ownership change” resulting in a Code Section 382 limitation on the U.S. tax attributes attributable to Primo Water was triggered as a result of the Transaction, we do not expect such
ownership change to meaningfully impact the annual utilization amount of such U.S. federal net operating losses, or of any disallowed interest expense carryforwards under Section 163(j) of the Code, of Primo Water that existed immediately prior to
the Transaction. We expect approximately $206.8 million of the Canadian net operating loss carryforwards attributable to Primo Water prior to the Transaction to have become non-deductible as a result of the Transaction. We have not completed a
study that would be necessary to determine whether an “ownership change” was triggered as a result of the Transaction with respect to the disallowed interest expense carryforwards attributable to BlueTriton prior to the Transaction, which
in turn would result in a limitation under Section 382 of the Code with respect to such carryforwards. Further, future sales of our stock (including with respect to Class A common stock subject to registration hereunder) could potentially result in
an ownership change for purposes of Section 382 of the Code, and the effect that such an ownership change could have on our ability to utilize our tax attributes will depend on the facts at the time of such ownership change.

Any “ownership change” with respect to us, which could occur as a result of transactions outside of our control, could potentially
result in a limitation on our ability to utilize certain of our tax attributes to offset our taxable income, which could adversely affect our future cash flows.

31

Accounting and Financial Statements Risks

Our reported financial results may be adversely affected by changes in accounting principles generally accepted in the United States.

GAAP is subject to interpretation by the Financial Accounting Standards Board, or FASB, the SEC and various bodies formed to