Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 139

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 139
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 was more likely than not that the fair value of the Primo Water Trademarks were more than their carrying value and therefore Primo Water was
not required to perform any additional testing.

There are inherent uncertainties related to each of the above listed assumptions, and
Primo Water’s judgment in applying them. Changes in the assumptions used in Primo Water’s qualitative assessment could result in impairment charges that could be material to its Consolidated Financial Statements in any given period.

Refer to Note 2 to Primo Water’s Consolidated Financial Statements for discussion regarding intangible assets for the discontinued
operations entities.

Other Intangible Assets

As of December 30, 2023, Primo Water’s intangible assets subject to amortization, net of accumulated amortization, were
$333.0 million, consisting principally of $310.7 million of customer relationships that arose

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from acquisitions, $13.8 million of software, and $5.9 million of patents. Customer relationships are typically amortized over the period for which Primo Water expects to receive the
economic benefits. The customer relationship intangible assets acquired in Primo Water’s acquisitions are amortized over the expected remaining useful life of those relationships on a basis that reflects the pattern of realization of the
estimated undiscounted after-tax cash flows. Primo Water reviews the estimated useful life of these intangible assets annually, unless a review is required more frequently due to a triggering event, such as a
loss of a significant customer. Primo Water reviews of the estimated useful life takes into consideration the specific net cash flows related to the intangible asset. The permanent loss of, or significant decline in sales to customers included in
the intangible asset would result in either an impairment in the value of the intangible asset or an accelerated amortization of any remaining value and could lead to an impairment of the fixed assets that were used to service that customer. Primo
Water did not record impairment charges for its intangible assets subject to amortization in the fiscal years ended December 30, 2023, December 31, 2022, and January 1, 2022.

Impairment and Disposal of Long-Lived Assets

When adverse events occur, Primo Water compares the carrying amount of long-lived assets to the estimated undiscounted future cash flows at the
lowest level of independent cash flows for the group of long-lived assets and recognize any impairment loss based on discounted cash flows in the consolidated statements of operations, taking into consideration the timing of testing