Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 131

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 131
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 estimates are based on historical experience, the advice of external experts or on other assumptions management believes to be reasonable. The consolidated financial statements include estimates and assumptions that, in the opinion of management, were significant to the underlying amounts representing the future valuation of intangible assets, long-lived assets and goodwill, insurance reserves, realization of deferred income tax assets, and the resolution of tax contingencies. Actual results could differ from estimates. Where actual amounts differ from estimates, such changes are included in the results for the period in which actual amounts become known. Historically, differences between estimates and actual amounts have not had a significant impact on Primo Water’s consolidated financial statements. Impairment Testing of Goodwill Primo Water operates through its North America operating segment, which is also its sole reportable segment. Primo Water tests goodwill for impairment at least annually on the first day of the fourth quarter, based on its reporting unit carrying values, calculated as total assets less non-interestbearing liabilities, as of the end of the third quarter, or more frequently if Primo Water determines a triggering event has occurred during the year. Primo Water evaluates goodwill for impairment on a reporting unit basis, which is an operating segment or a level below an operating segment, referred to as a component. A component of an operating segment is a reporting unit if the component constitutes a business for which discrete financial information is available and management regularly reviews the operating results of that component. However, two or more components of an operating segment can be aggregated and deemed a single reporting unit if the components have similar economic characteristics. Primo Water’s North America operating segment was determined to have three components: DSS, Aquaterra, and Mountain Valley. Primo Water determined that DSS and Aquaterra have similar economic characteristics and aggregated them as a single reporting unit for the purpose of testing goodwill for impairment (“DSSAqua”). Therefore, for the purpose of testing goodwill for impairment for the fiscal year ended December 30, 2023, Primo Water determined its reporting units were DSSAqua and Mountain Valley. Primo Water had goodwill of $1,004.6 million on its Consolidated Balance Sheet as of December 30, 2023, which represents amounts for the DSSAqua and Mountain Valley reporting units, as well as goodwill within its Other category. For purposes of the annual test for the fiscal year ended December 30, 2023, Primo Water elected to perform a qualitative assessment for all reporting units to assess whether it was more likely than not that