Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 120

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 120
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 result in impairment charges that could be material to the consolidated financial statements in any given period.

Self-Insurance Reserves

BlueTriton is self-insured for workers’ compensation, property, automobile, and general liability. The self-insurance claim liability is
determined actuarially, at a minimum annually, based on claims filed and an estimate of claims incurred but not yet reported. Actuarial projections of the losses are employed due to variability in the liability estimates. The estimates used are
derived from any inputs including the severity of claims, frequency, and volume of claims, the development timeframe, settlement history and patterns, and cost trends. BlueTriton has purchased stop-loss coverage from various insurers in order to
limit its claims exposure. The insurance-related liabilities are not discounted. The balances of BlueTriton’s self-insurance reserves were $41.8 million and $31.3 million for the years ended December 31, 2023 and 2022,
respectively. Since recorded amounts are based on estimates, the ultimate cost of all incurred claims and related expenses may be more or less than the recorded liabilities.

Quantitative and Qualitative Disclosures about Market Risk

Overview

BlueTriton’s
business and financial results are affected by fluctuations in world financial markets, including interest rates, credit risk, and overall inflation risks. BlueTriton may utilize fixed price or volume contracts that may extend over one year and
derivative financial instruments (including interest rate swap arrangements), among other methods, to hedge some of these exposures. BlueTriton does not use derivative financial instruments for speculative or trading purposes.

Interest Rate Risk

BlueTriton is
subject to interest rate market risk in connection with its floating rate long-term debt. BlueTriton’s principal interest rate exposure relates to outstanding amounts under the BlueTriton Senior Secured Credit Facilities, which bear interest at
a variable rate. If there is a rise in interest rates, our debt service obligations on the borrowings under the BlueTriton Senior Secured Credit Facilities would increase even though the amount borrowed remained the same, which would affect our
results of operations, financial condition, and liquidity.

Credit Risk

Credit risk arises from the potential that a customer or counterparty will fail to perform its obligations. BlueTriton is exposed to credit
risk on accounts receivable balances. BlueTriton believes that its concentration of

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credit risk related to trade accounts receivable is limited since these receivables are