Company: PRMB
Filing Date: 2025-02-07
Form Type: S-1/A
Source: 0001193125-25-022806
Chunk: 136

Company: Primo Brands Corp
Filing Date: 2025-02-07
Form: S-1/A
Chunk 136
---
 income, net of $2.5 million in 2022 due 
 primarily to higher unrealized foreign exchange losses in 2023;                                       |

| • |     | Income tax expense was $27.0 million on pre-tax income from                                                                                                                                      
 continuing operations of $90.8 million in 2023 compared to income tax expense of $19.5 million on pre-tax income from continuing operations of $78.2 million in the prior year. The increase was 
 due primarily to lower foreign exchange losses in the U.S. relative to the prior year;                                                                                                           |

| • |     | Adjusted EBITDA increased to $380.7 million in 2023 compared to $343.8 million in 2022 due to the items 
 listed above; and                                                                                       |

| • |     | Cash flows provided by operating activities from continuing operations was $289.2 million in 2023 compared 
 to $238.3 million in 2022. The $50.9 million increase was due primarily to improved                        |

85

| earnings, excluding non-cash charges and income and an increase in cash provided by working capital relative to the prior year. |

Critical Accounting Policies Primo Water’s significant accounting policies and recently issued accounting pronouncements are described in Note 1 to Primo Water’s Consolidated Financial Statements included elsewhere in this prospectus. Primo Water believes the following represent its critical accounting policies: Estimates Primo Water’s critical accounting policies require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in Primo Water’s consolidated financial statements and the accompanying notes and the disclosure of contingent assets and liabilities at the date of the financial statements and the amount of revenue and expenses during the reporting period. These estimates are based on historical experience, the advice of external experts or on other assumptions management believes to be reasonable. The consolidated financial statements include estimates and assumptions that, in the opinion of management, were significant to the underlying amounts representing the future valuation of intangible assets, long-lived assets and goodwill, insurance reserves, realization of deferred income tax assets, and the resolution of tax contingencies. Actual results could differ from estimates. Where actual amounts differ from estimates, such changes are included in the results for the period in which actual amounts become known. Historically, differences between estimates and actual amounts have not had a significant impact on Primo Water’s consolidated financial statements. Impairment Testing of Goodwill Primo Water operates through its North America operating segment, which is also its sole reportable segment