Company: VRT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001628280-25-005905
Chunk: 41

Company: Vertiv Holdings Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 16
Chunk 41
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 securities$— $3.4 $— $3.4 23 %Insurance arrangements— — 3.0 3.0 20 %Other— — 8.3 8.3 57 %Total$— $3.4 $11.3 $14.7 100 %

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Asset ClassesDebt securities represents investment-grade corporate and government bonds of issuers primarily outside the U.S. Insurance arrangements are primarily invested in bonds by the issuer and typically ensure no market losses or provide for a small minimum return guarantee. Other includes cash and general funds that invest primarily in equities, bank deposits and bonds with a guaranteed rate of return.Fair Value Hierarchy CategoriesValuations of Level 1 assets for all classes are based on quoted closing market prices from the principal exchanges where the individual securities are traded. Debt securities categorized as Level 2 assets are generally valued based on independent broker/dealer bids or by comparison to other debt securities having similar durations, yields and credit ratings. Other Level 2 assets are valued based on a net asset value of fund units held, which is derived from either market-observed pricing for the underlying assets or broker/dealer quotation. Interests in mixed assets funds are Level 2, and non-U.S. general fund investments and insurance arrangements are Level 3. The fair value of the insurance contracts is an estimate of the amount that would be received in an orderly sale to a market participant at the measurement date. The amount the plan would receive from the contract holder if the contracts were terminated is the primary input and is unobservable.Details of the changes in value for Level 3 assets are as follows:20242023Level 3, beginning balance January 1,$11.3 $2.8 Gains (losses) on assets held(0.2)3.3 Purchases, sales and settlements, net0.1 5.2 Level 3, ending balance December 31,$11.2 $11.3 

(9) INCOME TAXES

The Company's effective tax rate was 35.2%, 13.8%, and 54.1%, for the years ended December 31, 2024, 2023, and 2022, respectively. The effective rate in 2024 was primarily influenced by changes in tax incentives, offset by the net change in valuation allowance and the non-tax deductibility of the change in fair