Company: PRMB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0002042694-25-000003
Chunk: 133

Company: Primo Brands Corp
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 133
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 acquisition. Assumptions include projected revenue growth rates, operating expense rates, cost synergies, customer attrition rates, tax rates, contributory asset charges, and risk-adjusted discount rates.The estimated fair value of trademarks and trade names represents the future projected cost savings associated with the premium and brand image obtained as a result of owning the trademark or trade name as opposed to obtaining the benefit of the trademark or trade name through a royalty or rental fee.  Assumptions include revenue growth rate, royalty rate, and discount rate.The estimated fair value of water rights represents the economic benefit resulting from the legal right to extract water from spring sources. The primary assumption is the discount rate. The following table presents the components of identifiable intangible assets associated with the Transaction and their estimated weighted-average useful lives:($ in millions)Estimated Fair Market ValueWeighted-Average Useful Life (Years)Trademarks and trade names$594.6IndefiniteDefinite-lived trademarks and trade names18.71 yearCustomer relationships1,046.415 yearsWater rights157.625 yearsSoftware15.11 yearOther4.32 yearsTotal identifiable intangible assets$1,836.7GoodwillThe principal factor that resulted in recognition of goodwill was the basis of the purchase price in the Transaction, in part, on cash flow projections assuming the reduction of administration costs and the integration of acquired customers and products into the Company's operations, which is of greater value than on a standalone basis.Unaudited Supplemental Pro Forma InformationThe following table presents unaudited supplemental pro forma information for the periods presented as if the business combination occurred on January 1, 2023:For the Year Ended December 31,($ in millions)20242023Net sales$6,813.5$6,461.3Net income$55.9$51.8The pro forma results presented above primarily include the impacts of the following: the alignment of Primo Water accounting policies to those of BlueTriton, non-recurring expenses related to transaction costs incurred by BlueTriton, the estimated amortization expense associated with the fair value of the acquired intangible assets and the tax impact of these adjustments. The pro forma information is presented for information purposes only and is not indicative of the results of operations that would have been achieved if the acquisitions had taken place at such time.For the post-Transaction period ended December 31, 2024, the net sales and net losses attributable to the acquired Primo Water business reflected in the Consolidated Statements of Operations were $