Primo Brands Corp Fair Value Disclosure
| December 31, 2025 | |||||||||||||||||||||||
| ($ in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||
| Money market investments | $ | 14.1 | $ | 14.1 | $ | — | $ | — | |||||||||||||||
| Split-dollar life insurance policies | 24.8 | — | 24.8 | — | |||||||||||||||||||
Foreign exchange contracts | 11.6 | — | 11.6 | — | |||||||||||||||||||
Interest rate swaps | 0.4 | — | 0.4 | — | |||||||||||||||||||
| $ | 50.9 | $ | 14.1 | $ | 36.8 | $ | — | ||||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||
| Commodity forwards | $ | 3.5 | $ | — | $ | — | $ | 3.5 | |||||||||||||||
| $ | 3.5 | $ | — | $ | — | $ | 3.5 | ||||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| ($ in millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
| Financial Assets: | |||||||||||||||||||||||
| Money market investments | $ | 14.1 | $ | 14.1 | $ | — | $ | — | |||||||||||||||
| Split-dollar life insurance policies | 24.7 | — | 24.7 | — | |||||||||||||||||||
| $ | 38.8 | $ | 14.1 | $ | 24.7 | $ | — | ||||||||||||||||
| Financial Liabilities: | |||||||||||||||||||||||
| Foreign exchange contracts | $ | 36.0 | $ | — | $ | 36.0 | $ | — | |||||||||||||||
| Commodity forwards | 5.4 | — | — | 5.4 | |||||||||||||||||||
| $ | 41.4 | $ | — | $ | 36.0 | $ | 5.4 | ||||||||||||||||
| December 31, 2025 | December 31, 2024 | ||||||||||||||||||||||
| ($ in millions) | Carrying Value | Fair Value | Carrying Value | Fair Value | |||||||||||||||||||
| Term Loans | $ | 3,067.6 | $ | 3,082.9 | $ | 3,098.6 | $ | 3,121.8 | |||||||||||||||
6.250% Senior Notes 1 | 712.8 | 719.0 | 713.0 | 709.4 | |||||||||||||||||||
3.875% Senior Notes 1 | 512.2 | 522.1 | 459.8 | 459.9 | |||||||||||||||||||
4.375% Senior Notes 1 | 714.8 | 729.4 | 710.0 | 701.2 | |||||||||||||||||||
Non-tendered Original Senior Notes | 13.3 | 13.2 | — | — | |||||||||||||||||||
Total | $ | 5,020.7 | $ | 5,066.6 | $ | 4,981.4 | $ | 4,992.3 | |||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.