Company: VRT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001628280-25-005905
Chunk: 42

Company: Vertiv Holdings Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 16
Chunk 42
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 value of warrant liabilities. The effective rate in 2023 was primarily influenced by the net valuation allowance release offset by the non-tax deductibility of the change in fair value of warrant liabilities. The effective rate in 2022 was primarily influenced by the mix of income between the Company’s U.S. and non-U.S. operations, favorable tax rates and incentives in non-U.S. jurisdictions, taxes accrued on unremitted earnings, withholding taxes on cross-border payments, changes in valuation allowance for U.S. federal and state and non-US purposes, the global intangible low-taxed income (“GILTI”) provisions of the Tax Cuts and Jobs Act (“the Act”), the change in fair value of warrant liabilities, and changes in reserves for uncertain tax positions. The GILTI provisions of the Act require the Company to include in its U.S. income tax return foreign subsidiary earnings in excess of an allowable return on the foreign subsidiary’s tangible assets. The Company has made the policy election to record any liability associated with GILTI in the period in which it is incurred.Earnings (loss) before income taxes from continuing operations consists of the following:Year Ended December 31, 202420232022U.S.$189.5 $49.1 $(83.0)Non-U.S.(1)575.9 484.6 250.0 Total earnings (loss) before income taxes$765.4 $533.7 $167.0 (1)Certain of the Company’s Non-U.S. entities generate significant losses for which a valuation allowance is provided for and accordingly do not create a tax benefit.

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The principal components of income tax expense (benefit) from continuing operations consists of the following:Year Ended December 31, 202420232022Current:Federal$66.7 $45.5 $1.2 State and local21.8 16.9 3.4 Non-U.S.235.5 142.5 94.4 Deferred:Federal(6.0)(94.0)4.3 State and local(0.4)(23.5)(1.5)Non-U.S.(48.0)(13.9)(11.4)Income tax expense (benefit)$269.6 $73.5 $90.4 Reconciliation of U.S. federal statutory taxes to the Company’s total income tax expense (benefit) from continuing operations consists of the following