Company: DXPE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050322
Chunk: 83

Company: DXP ENTERPRISES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 83
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 continuation of 100% bonus depreciation, and the restoration of the EBITDA-based Section 163(j) limitation are expected to decrease cash taxes in the short term and generate a federal net operating loss. These changes are not expected to have a material impact on the Company’s effective tax rate.The Organization of Economic Cooperation and Development (“OECD”) continues to release additional guidance, including administrative guidance on how Pillar Two rules should be interpreted and applied by jurisdictions as they adopt Pillar Two. A number of countries have utilized the administrative guidance as a starting point for legislation that went into effect January 1, 2024. As of September 30, 2025, DXP anticipates the impact of Pillar Two to be immaterial to the Company based on current legislation that has been enacted to date.

NOTE 8 – LONG-TERM DEBT

Long-term debt consisted of the following (in thousands): September 30, 2025December 31, 2024ABL Revolver$— $— Amended Senior Secured Term Loan B due October 13, 2030(1)643,005 647,876 Promissory Note due November 1, 20291,000 1,000 Total debt644,005 648,876 Less: current maturities(6,595)(6,595)Total long-term debt$637,410 $642,281 Unamortized discount and debt issuance costs18,014 20,597 Long-term debt, net of unamortized discount and debt issuance costs$619,396 $621,684 (1) The fair value of the Amended Term Loan B due October 13, 2030 using level 2 input values was $647.8 million and $657.6 million as of September 30, 2025 and December 31, 2024, respectively.

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Senior Secured Term Loan B:On October 3, 2024, the Company entered into an amendment on its existing Senior Secured Term Loan B (the “Term Loan Amendment”), which provides for, among other things, an additional $105.0 million in new incremental commitments. The Term Loan Amendment refinanced the existing Senior Term Loan B and replaced it with an Amended Senior Secured Term Loan B with total borrowings of $649.5 million. The Senior Secured Term Loan B amortizes in equal quarterly installments of 0.25 percent