Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 125

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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 for sale. The Company’s inventories are accounted for using the weighted-average cost method and valued at the lower of cost or net realizable value.Inventory costs consist of product and inbound shipping and handling costs. Inventory valuation requires the Company to make judgments, based on currently available information, about the likely method of disposition, such as through sales to individual customers or returns to product vendors. Vendor Rebates The Company’s arrangements with vendors typically provide for rebates after it makes a special purchase and/or monthly, quarterly, and/or annual rebates of a specified amount of consideration payable when a number of measures have been achieved. Annual rebates are generally related to a specified cumulative level of purchases on a calendar-year basis. The Company accounts for such rebates as a reduction of the inventory value until the product is sold, at which time such rebates reduce cost of products sold in the condensed consolidated statements of operations. Throughout the year, the Company estimates the amount of the periodic rebates based upon the expected level of purchases. The Company continually revises these estimates to reflect actual rebates earned based on actual purchase levels. 

11

Property and EquipmentProperty and equipment acquired in connection with acquisitions are recorded at fair value as of the date of the acquisition and depreciated utilizing the straight-line method over the estimated remaining useful lives. All other additions are recorded at cost, and depreciation is computed using the straight-line method. The Company reviews the estimated useful lives of its fixed assets on an ongoing basis.The estimated useful lives of property and equipment are principally as follows:Buildings40 yearsEquipment3 to 7 yearsFurniture and fixtures7 yearsSoftware3 to 5 yearsFinance lease assets and leasehold improvementsShorter of the estimated useful life or lease term, considering renewal options expected to be exercised.The following is a summary of property and equipment, net:As ofJune 30,2025December 31,2024(in millions)Equipment$253.3 $4.0 Finance lease assets190.5 — Leasehold improvements118.0 0.1 Furniture and fixtures27.7 0.2 Software29.1 — Land and buildings59.4 — Fixed assets in progress40.0 — Total property and equipment718.0 4.3 Accumulated depreciation(21.7)(3.9)Total property and equipment, net$696.3 $0.4 GoodwillOn an annual basis and at interim periods when circumstances require, the Company