Company: PRMB
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0002042694-25-000003
Chunk: 166

Company: Primo Brands Corp
Filing Date: 2025-02-27
Form: 10-K
Item: Item 16
Chunk 166
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 Amount is net of tax impact of $0.3 million for the year ended December 31, 2024.There were no settlements of the Company's foreign exchange contracts during the year ended December 31, 2024.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 December 31, 2024 and 2023, the fair value of the Company's commodity forwards were liabilities of $5.4 million and $3.6 million, respectively, which are recorded in Accruals and other current liabilities in the Consolidated Balance Sheets. The change in fair value of the commodity forwards is reflected within Other operating expense, net in the Consolidated Statements of Operations.

F-42

NOTE 20—FAIR VALUE MEASUREMENTS 

The following table summarizes the fair values of financial instruments:December 31, 2024($ in millions)TotalLevel 1Level 2Level 3Financial Assets:Money market investments$14.1 $14.1 $— $— Split-dollar life insurance policies24.7 — 24.7 — $38.8 $14.1 $24.7 $— Financial Liabilities:Foreign exchange contracts$36.0 $— $36.0 $— Commodity forwards5.4 — — 5.4 $41.4 $— $36.0 $5.4 December 31, 2023($ in millions)TotalLevel 1Level 2Level 3Financial Assets:Money market investments$15.4 $15.4 $— $— Split-dollar life insurance policies27.5 — 27.5 — $42.9 $15.4 $27.5 $— Financial Liabilities:Commodity forwards$3.6 $— $— $3.6 The fair values of the Company’s money market investments are based on the daily market price for identical assets in active markets. The fair value of the Company's split-dollar life insurance policies are the cash surrender value