Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 287

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 287
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leaseback accounting as a result of finance lease classification or the failure to meet certain sale recognition criteria is accounted for as a financing transaction.

Business Combinations

The Company recognizes the
assets acquired and liabilities assumed in business combinations based on their estimated fair values at the date of acquisition. The Company assesses the fair value of assets, including intangible assets, using a variety of methods and each asset
is measured at fair value from the perspective of a market participant. Assets recorded from the perspective of a market participant that are determined to not have economic use for the Company are expensed immediately. Any excess purchase price
over the fair value of the net tangible and intangible assets acquired is allocated to goodwill. Transaction costs and restructuring costs associated with a business combination are expensed as incurred.

The Consolidated Financial Statements include the results of operations of an acquired business after the completion of the acquisition.

F-24

Goodwill and Other Intangible Assets The Company classifies intangible assets into three categories: (1) goodwill, (2) intangible assets with indefinite lives not subject to amortization and (3) intangible assets with definite lives subject to amortization. Goodwill represents the excess of the purchase price of an acquired entity over the fair value of assets and liabilities assumed in a business combination. The Company determines the useful lives of identifiable intangible assets after considering the specific facts and circumstances related to each intangible asset. Factors considered when determining useful lives include the contractual term of any agreement related to the asset, the historical performance of the asset, the Company’s long-term strategy for using the asset, any laws or other local regulations which could impact the useful life of the asset, and other economic factors, including competition and specific market conditions. Intangible assets that are deemed to have definite lives are amortized. For financial reporting purposes, amortization is computed on a straight-line basis over an asset’s useful life as follows:

| Type of Intangible Asset |     | Useful Life   |
| Customer relationships   |     | 10 - 15 years |
| Water rights             |     | 1 - 40 years  |
| Other                    |     | 1 - 18 years  |

The Company’s intangible assets with indefinite lives relate to trade names and trademarks acquired. There are no legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of these intangible assets. Goodwill and intangible assets with indefinite lives are not amortized, and as a result, impairment tests must be performed at