Company: PRMB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0002042694-25-000015
Chunk: 173

Company: Primo Brands Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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 settle for transactions with the same counterparty. To minimize the concentration of credit risk, the Company may enter into derivative transactions with a portfolio of financial institutions. Based on these factors, the Company considers the risk of counterparty default to be minimal.Fair Value Hedging StrategyIn connection with the Transaction, the Company acquired foreign exchange contracts with a notional amount of €450.0 million ($526.9 million at exchange rates in effect on June 30, 2025) and a maturity date of October 31, 2025. The Company is utilizing the derivative financial instruments to hedge foreign exchange risk associated with the Company's 3.875% Senior Notes.

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The Company designated the foreign exchange contracts as fair value hedges. The foreign exchange contracts are recognized on the Condensed Consolidated Balance Sheets at fair value and changes in the fair value of the foreign exchange contracts are recorded in the same line as the hedged item, which is Other operating (income) expense, net in the Condensed Consolidated Statements of Operations. The Company excludes forward points from its assessment of hedge effectiveness and amortizes them on a straight-line basis over the life of the hedging instruments in Other operating (income) expense, net in the Condensed Consolidated Statements of Operations. The difference between fair value changes of the excluded component and the amount amortized to Other operating (income) expense, net is recorded as a component of AOCI on the Condensed Consolidated Balance Sheets.The following amounts were recorded on the Condensed Consolidated Balance Sheets related to hedged items as of June 30, 2025 and December 31, 2024:($ in millions)June 30, 2025December 31, 2024Line Item in Condensed Consolidated Balance Sheets in Which the Hedged Item Is IncludedCarrying Amount of the Hedged LiabilityLong-term debt, less current portion 1$526.9 $468.7 ______________________1   Carrying amount excludes the unamortized debt discounts as of June 30, 2025 and December 31, 2024.The fair value of the Company's derivative assets and liabilities included in Prepaid expenses and other current assets and Accruals and other current liabilities, respectively, as of June 30, 2025 and December 31, 2024 was as follows:($ in millions)June 30, 2025December 31, 2024Derivative ContractAssetsLiabilitiesAssetsLiabilitiesForeign exchange contracts$