Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 59

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 as collateral for the Company’s credit card program. The following table provides a reconciliation of cash, cash equivalents and restricted cash:As of(in millions)June 30,2025December 31,2024Cash and cash equivalents$2,278.5 $5,068.5 Restricted cash included in prepaid expenses and other current assets3.8 3.5 Total cash, cash equivalents and restricted cash$2,282.3 $5,072.0 Accounts ReceivableThe Company records accounts receivable at the contractual amount and records an allowance for credit losses for the amount the Company estimates it may not collect. In determining the allowance for credit losses, the Company considers historical collection experience, the age of the accounts receivable balances, the credit quality and risk of its customers, any specific customer collection issues, current economic conditions, and other factors that may impact customers’ ability to pay. The Company also considers reasonable and supportable forecasts of future economic conditions and their expected impact on customer collections in determining the allowance for credit losses. Accounts receivable balances are written off once the receivables are no longer deemed collectible.The following table represents the roll-forward of the allowance for expected credit losses for the six months ended June 30, 2025 and the year ended December 31, 2024:(in millions)June 30,2025December 31,2024Balance at beginning of period$0.5 $0.5 Current period provision for expected credit losses2.7 — Recoveries0.1 — Balance at end of period$3.3 $0.5 Inventories The Company’s inventories primarily represent finished goods, consisting of products available 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