Company: VRT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001628280-25-005905
Chunk: 19

Company: Vertiv Holdings Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 16
Chunk 19
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 adjustments from these hedges are included in the Consolidated Statements of Shareholders’ Equity (Deficit) in the foreign currency translation adjustment of “Foreign currency (gain) loss, net” which offsets the translation adjustments on the underlying net assets of foreign subsidiaries also recorded in “Other Comprehensive income (loss), net of tax”.The Company designated certain interest rate swaps with a notional amount of $1,000.0 as cash flow hedges until maturity, which corresponds with the maturity of the Term Loan Credit Agreement in 2027. The Company uses interest rate swaps to manage the interest rate mix of our total debt portfolio and related overall cost of borrowing. The interest rate swaps are valued using the secured overnight financing rate ("SOFR") yield curves at the reporting date and are classified in Level 2. Counterparties to these contracts are highly rated financial institutions. At December 31, 2024 and 2023 interest rate swap agreements designated as cash flow hedges effectively swapped a notional amount of $1,000.0, of SOFR based floating rate debt for fixed rate debt. See “Note 12 – Financial instruments and Risk Management” for additional information.The Company may enter into derivative financial instruments designed to hedge the exposure to changes in foreign currency exchange rates. The Company values foreign currency exchange swaps using broker quotations or market transactions on the listed or over-the-counter market, as such, these derivative instruments are classified in Level 2. When the derivative instrument qualifies as a cash flow hedge, changes in the fair value are deferred through other comprehensive income. The Company reclassifies the gain or loss associated with the cash flow hedges into earnings when the underlying exposure affects earnings. At December 31, 2024, we have derivative instruments which hedge our exposure to certain foreign currency exchange rates with a notional amount of $129.0. See “Note 12 – Financial Instruments and Risk Management” for additional information.The Company enters into derivative instruments designed to hedge anticipated purchases of aluminum and copper. As of December 31, 2024, we have hedged notional amounts of 10,730.0 and 7,330.0 metric tons, respectively. The Company values these instruments using broker quotations, market transactions or option pricing model based on observable market inputs, as such, these derivative instruments are classified in Level 2. See “Note 12 – Financial Instruments and Risk Management” for additional information.As of December 31, 2024 and 2023 there are some currency hedges not designated