Company: PRMB
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001193125-25-012325
Chunk: 132

Company: Primo Brands Corp
Filing Date: 2025-01-24
Form: S-1
Chunk 132
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 the fair value of these reporting units exceeded their respective carrying values. In performing these assessments, management relied on a number of factors including, but not limited to, macroeconomic conditions, industry and market considerations, cost factors that would have a negative effect on earnings and cash flows, overall financial 85

performance compared with forecasted projections in prior periods, and other relevant reporting unit events, the impact of which are all significant judgments and estimates. Based on these
factors, management concluded that it was more likely than not that the fair values of Primo Water’s reporting units were greater than their respective carrying amounts, including goodwill, indicating no impairment during the fiscal year ended
December 30, 2023.

Each year during the fourth quarter, Primo Water re-evaluates the
assumptions used in its assessments, such as revenue growth rates, SG&A expenses, capital expenditures and discount rates, to reflect any significant changes in the business environment that could materially affect the fair value of Primo
Water’s reporting units. Based on the evaluations performed in 2023, Primo Water determined that the fair value of each of its reporting units exceeded their carrying amounts.

There are inherent uncertainties related to each of the above listed assumptions, and Primo Water’s judgment in applying them. Changes in
the assumptions used in its qualitative assessment could result in impairment charges that could be material to Primo Water’s consolidated financial statements in any given period.

Refer to Note 2 to Primo Water’s Consolidated Financial Statements for discussion regarding goodwill for the discontinued operations
entities.

Impairment Testing of Intangible Assets

Primo Water’s intangible assets with indefinite lives relate to trademarks acquired in the acquisition of businesses, and there are no
legal, regulatory, contractual, competitive, economic, or other factors that limit the useful life of these intangible assets. Primo Water’s trademarks with indefinite lives are not amortized, but rather are tested for impairment at least
annually or more frequently if it determines a triggering event has occurred during the year. Primo Water compares the carrying amount of the intangible assets to its fair value and when the carrying amount is greater than the fair value, Primo
Water recognizes an impairment loss. Primo Water’s intangible assets with indefinite lives relate primarily to trademarks acquired in the acquisition of Legacy Primo, trademarks acquired in the acquisition of DSS, one of the trademarks acquired
in the acquisition of Aquaterra, trademarks acquired in the acquisition of Mountain Valley, and trademarks acquired in the acquisition