Primo Brands Corp Leases Disclosure
| For the Year Ended December 31, | |||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Operating lease expense | $ | 142.5 | $ | 116.7 | $ | 119.5 | |||||||||||
Short-term and variable lease expense | 11.0 | 18.8 | 17.2 | ||||||||||||||
Finance lease related expense: | |||||||||||||||||
Depreciation expense | 38.4 | 9.0 | 0.5 | ||||||||||||||
Interest on lease liabilities | 8.4 | 2.3 | 0.1 | ||||||||||||||
| Total lease expense | $ | 200.3 | $ | 146.8 | $ | 137.3 | |||||||||||
Sub-lease income | $ | 6.4 | $ | 2.5 | $ | 0.2 | |||||||||||
| For the Year Ended December 31, | |||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Cash paid for amounts included in the measurement of lease obligations: | |||||||||||||||||
| Operating cash outflows related to operating leases | $ | 139.3 | $ | 114.1 | $ | 114.8 | |||||||||||
Operating cash outflows related to finance leases | $ | 7.7 | $ | 2.3 | $ | 0.1 | |||||||||||
Financing cash outflows related to finance leases | $ | 34.5 | $ | 8.2 | $ | 0.4 | |||||||||||
| Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||
| Operating leases | $ | 52.8 | $ | 12.7 | $ | 136.6 | |||||||||||
Operating leases modification | $ | (28.6) | $ | — | $ | — | |||||||||||
Finance leases | $ | 104.7 | $ | 42.7 | $ | 11.3 | |||||||||||
| December 31, | |||||||||||
| ($ in millions) | 2025 | 2024 | |||||||||
| Operating leases: | |||||||||||
Operating lease right-of-use assets, net | $ | 539.3 | $ | 628.7 | |||||||
| Current operating lease obligations | $ | 92.9 | $ | 95.5 | |||||||
| Operating lease obligations, less current portion | 474.4 | 555.6 | |||||||||
| Total operating lease obligations | $ | 567.3 | $ | 651.1 | |||||||
Finance leases: | |||||||||||
| Property, plant and equipment, net | $ | 168.3 | $ | 100.3 | |||||||
Current portion of long-term debt | $ | 36.9 | $ | 27.4 | |||||||
| Long-term debt, less current portion | 133.9 | 72.8 | |||||||||
| $ | 170.8 | $ | 100.2 | ||||||||
| Weighted-average remaining lease term: | |||||||||||
| Operating leases | 7.6 years | 8.2 years | |||||||||
Financing leases | 9.4 years | 4.2 years | |||||||||
| Weighted-average discount rate: | |||||||||||
| Operating leases | 5.8% | 5.8% | |||||||||
Financing leases | 6.2% | 6.4% | |||||||||
| ($ in millions) | Operating Leases | Finance Leases | |||||||||
2026 | $ | 126.4 | $ | 46.7 | |||||||
| 2027 | 108.2 | 34.0 | |||||||||
| 2028 | 89.5 | 24.5 | |||||||||
| 2029 | 74.1 | 17.4 | |||||||||
2030 | 63.7 | 14.5 | |||||||||
| Thereafter | 246.0 | 92.7 | |||||||||
Total lease payments | 707.9 | 229.8 | |||||||||
Less: Imputed interest | (140.6) | (59.0) | |||||||||
| Total lease obligations | $ | 567.3 | $ | 170.8 | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.