Company: PRMB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0002042694-25-000007
Chunk: 117

Company: Primo Brands Corp
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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The amount of gains or (losses) recognized in Other operating expense (income), net in the Condensed Consolidated Statements of Operations for fair value hedging relationships, presented on a pre-tax basis, for the three months ended March 31, 2025 is shown in the table below:($ in millions)March 31, 2025Foreign exchange contractsHedged item$(17.5)Derivative designated as hedging instrument$17.5 Amount reclassified from AOCI to expense (amortized)$(2.3)The amount of gains or (losses), net of tax, recognized in the Condensed Consolidated Statements of Comprehensive Income  for fair value hedging relationships for the three months ended March 31, 2025 is shown in the table below:($ in millions)March 31, 2025Foreign exchange contractsAmount excluded from the assessment of effectiveness 1$0.3 ______________________1.    Amount is net of tax expense of $0.1 million for the three months ended March 31, 2025.There were no settlements of the Company's foreign exchange contracts during the three months ended March 31, 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 March 31, 2025 and December 31, 2024, the fair value of the Company's commodity forwards were liabilities of $4.3 million and $5.4 million, respectively, which are 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 expense (income), net in the Condensed Consolidated Statements of Operations.

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NOTE 13—FAIR VALUE MEASUREMENTS 

The following tables summarize the fair values of financial instruments:March 31, 2025($ in millions)TotalLevel 1Level 2Level 3Financial Assets:Money market investments$14.1 $14.1 $— $— Split-dollar life insurance policies24.7 — 24.7 —