SEGMENT REPORTING
Primo Brands operates as a single segment. The Company has a comprehensive portfolio of highly recognizable and conveniently packaged branded water and beverages that reach consumers whenever, wherever, and however they hydrate through distribution across retail outlets, away from home such as hotels and hospitals, and food service accounts, as well as direct delivery to homes and businesses. These brands include established “billion-dollar brands” Poland Spring® and Pure Life®, premium brands like Saratoga® and The Mountain Valley®, regional leaders such as Arrowhead®, Deer Park®, Ice Mountain®, Ozarka®, and Zephyrhills®, purified brands including Primo Water® and Sparkletts®, and flavored and enhanced brands like Splash Refresher™ and AC+ION®. Primo Brands also has an industry-leading line-up of innovative water dispensers, which create consumer connectivity through recurring water purchases.
The accounting policies of the Company's segment have not changed from those described in the Summary of Significant Accounting Policies (see Note 2 - "Summary of Significant Accounting Policies").
The Chief Operating Decision Maker ("CODM") assesses performance for the segment and decides how to allocate resources based on segment net (loss) income from continuing operations that is also reported in the Consolidated Statements of Operations as such.
The measure of segment assets is reported on the Consolidated Balance Sheets as total assets. Segment capital expenditures are reported in the Consolidated Statements of Cash Flows as purchases of plant, property and equipment and purchases of intangible assets.
The CODM uses Net income (loss) from continuing operations to evaluate income generated from segment assets in deciding whether to reinvest profits into the segment or into other parts of the Company, such as for acquisitions or to pay dividends.
Net income (loss) from continuing operations is used to monitor budget versus actual results. The CODM also uses the Company's performance in competitive analysis by benchmarking to Primo Brands' competitors. The competitive analysis along with the monitoring of budgeted versus actual results are used in assessing performance of the segment and in establishing management’s compensation.
The Company has one reportable segment. The segment sources, bottles and delivers water to customers in North America and manages the business activities on a consolidated basis. The Company does not assess the performance of its individual products on measures of profit or loss, or asset-based metrics. Net sales by water type can be found in Note 17 - "Revenue Recognition".
The Company's Chief Executive Officer is the CODM.
Business segment information is presented below:
| | | | | | | | | | | | | | | | | | | | | |
| | | For the Year Ended December 31, |
| ($ in millions) | | | | | 2025 | | 2024 | | 2023 |
| Net sales | | | | | $ | 6,664.0 | | $ | 5,152.5 | | $ | 4,698.7 |
| Less: | | | | | | | | | |
Cost of sales, adjusted 1 | | | | | 4,134.4 | | 3,252.8 | | 3,085.9 |
| Marketing expense | | | | | 205.5 | | 218.5 | | 197.7 |
Selling expense, adjusted 1 | | | | | 460.1 | | 349.8 | | 305.3 |
General and administrative expense, adjusted 1 | | | | | 431.8 | | 336.8 | | 326.3 |
| Intangible asset impairment | | | | | 35.6 | | — | | — |
| Other income, net | | | | | (59.7) | | — | | — |
Other segment expense 2 | | | | | 356.0 | | 301.0 | | 71.8 |
| Depreciation and amortization | | | | | 610.2 | | 333.3 | | 305.7 |
| Interest and financing expense, net | | | | | 326.5 | | 339.6 | | 288.1 |
| Loss on modification and extinguishment of debt | | | | | 18.6 | | — | | — |
| Income taxes | | | | | 64.6 | | 33.3 | | 25.1 |
| Segment net income (loss) from continuing operations | | | | | $ | 80.4 | | $ | (12.6) | | $ | 92.8 |
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1 The financial statement line items as presented in this table exclude depreciation and amortization and certain non-recurring income or charges.
2 Other segment expenses include acquisition, integration and restructuring costs (as disclosed in Note 18 - "Acquisition, Integration and Restructuring Expenses"), stock-based compensation (as disclosed in Note 15 - "Stock-based Compensation" and other non-recurring income and charges.
Long-lived assets in the United States, consisting of net fixed assets and operating lease right-of-use assets, accounted for 98.2% and 97.8% of consolidated long-lived assets as of December 31, 2025 and December 31, 2024, respectively.