Company: PRMB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0002042694-25-000015
Chunk: 174

Company: Primo Brands Corp
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 174
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20.3 $— $— $36.0 The amount of gains or (losses) recognized in Other operating (income) expense, net in the Condensed Consolidated Statements of Operations for fair value hedging relationships, presented on a pre-tax basis, for the three and six months ended June 30, 2025 is shown in the table below:($ in millions)Three Months EndedJune 30, 2025Six Months EndedJune 30, 2025Foreign exchange contractsHedged item$(40.7)$(58.2)Derivative designated as hedging instrument$40.7 $58.2 Amount reclassified from AOCI to expense (amortized)$(2.4)$(4.7)The amount of gains or (losses), net of tax, recognized in the Condensed Consolidated Statements of Comprehensive Income  for fair value hedging relationships for the three and six months ended June 30, 2025 is shown in the table below:($ in millions)Three Months EndedJune 30, 2025Six Months EndedJune 30, 2025Foreign exchange contractsAmount excluded from the assessment of effectiveness 1$(1.7)$(1.4)______________________1   Amount is net of tax expense of $0.6 million and $0.5 million for the three and six months ended June 30, 2025, respectively.There were no settlements of the Company's foreign exchange contracts during the three and six months ended June 30, 2025.Economic (Non-Designated) Hedging StrategyIn addition to derivative instruments that have been designated and qualify for hedge accounting, the Company also uses certain derivatives as economic hedges of commodity exposure. Although these derivatives were not designated and/or did not qualify for hedge accounting, they are effective economic hedges. The changes in the fair values of economic hedges are immediately recognized in earnings.

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As of June 30, 2025, the fair value of the Company's commodity forwards were short-term assets of $0.4 million recorded in Prepaid expenses and other current assets, short-term liabilities of $3.0 million recorded in Accruals and other current liabilities, and long-term liabilities of $0.8 million recorded in Other non-current liabilities on the Condensed Consolidated Balance Sheets.As of December 31, 2024, the fair value of the Company's commodity forwards were short-term liabilities of $5.4