Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 124

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 124
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 involved may be material.

Off-BalanceSheet Arrangements

BlueTriton does not have any relationships with unconsolidated
entities or financial partnerships, such as entities often referred to as “structured finance or special purpose entities,” which would have been established for the purpose of facilitating
off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Estimates

BlueTriton’s discussion and analysis of its financial condition and results of operations are based upon its
consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of BlueTriton’s consolidated financial statements requires BlueTriton to make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosure of contingent liabilities as of the balance sheet date and the amounts of revenues and expenses during the year. On an ongoing basis, BlueTriton evaluates its estimates, including those related to sales
incentives recorded against revenue, valuation of assets and liabilities in connection with acquisitions, collectability of trade receivables, self-insurance reserves, inventory reserves, realizability of income taxes, useful lives of property,
plant and equipment and intangible assets, fair value of reporting units in connection with the annual goodwill and indefinite lived intangible assessments, valuation of insurance reserves, and the incremental borrowing rate related to lease
obligations. Actual results may differ from these estimates under different assumptions or conditions.

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BlueTriton believes that, of its significant accounting policies, which are described in
Note 2, “Summary of Significant Accounting Policies,” to its consolidated financial statements included elsewhere in this prospectus, the following accounting estimates are the most critical to an understanding of its financial
statements because they involve a higher degree of judgment and complexity.

Revenue Recognition

BlueTriton’s principal source of revenue is bottled water sales to customers primarily in the United States and Canada. Revenue is
recognized when a customer obtains control of promised goods (the obligation), which may be upon shipment of goods or upon delivery to the customer as defined in the customer contract or purchase order. Revenue is recognized at an amount that
reflects the consideration BlueTriton expects to receive in exchange for those goods. Amounts collected from customers for sales taxes are excluded from the transaction price. BlueTriton measures revenue based on the consideration specified in the
customer arrangement, and revenue is recognized when the performance obligations in the customer arrangement are satisfied. A performance obligation is a contractual promise to transfer a distinct good to the customer. The