Company: DXPE
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001628280-25-050322
Chunk: 81

Company: DXP ENTERPRISES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 8
Chunk 81
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 on the unaudited condensed consolidated balance sheets due to the relative short maturity of these instruments.See Note 8 - Long-term Debt for fair value disclosures on our asset-backed line of credit and term loan debt under our syndicated credit agreement facilities.

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NOTE 5 – INVENTORIES

Inventories are made up of equipment purchased for resale, and materials utilized in the fabrication of industrial and wastewater equipment stated at lower of cost or net realizable value, primarily determined using the weighted average cost method. The Company reviews inventory and records provisions for the difference between cost and net realizable value arising from excess and obsolete items on hand based upon the aging of the inventories, market trends, and continued demand.The carrying values of inventories are as follows (in thousands):September 30, 2025December 31, 2024Finished goods$94,728 $89,780 Work in process14,327 13,333 Inventories$109,055 $103,113 

NOTE 6 – CONTRACT ASSETS AND LIABILITIES

Under our customized pump production and water and wastewater project contracts, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets presented as "Costs and estimated profits in excess of billings." However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as "Billings in excess of costs and estimated profits" on our unaudited condensed consolidated balance sheets.Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands): September 30, 2025December 31, 2024Costs incurred on uncompleted contracts$148,600 $122,951 Estimated profits, thereon70,927 58,373 Total costs and estimated profits on uncompleted contracts219,527 181,324 Less: billings to date178,891 143,251 Net$40,636 $38,073 Such amounts were included in the accompanying unaudited condensed consolidated balance sheets for September 30, 2025 and December 31, 2024 under the following captions (in thousands): September 30, 2025December 31, 2024Costs and estimated profits in excess of billings$