Company: QXO-PB
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001628280-25-040367
Chunk: 60

Company: QXO, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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 product is sold, at which time such rebates reduce cost of products sold in the condensed consolidated statements of operations. Throughout the year, the Company estimates the amount of the periodic rebates based upon the expected level of purchases. The Company continually revises these estimates to reflect actual rebates earned based on actual purchase levels. 

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Property and EquipmentProperty and equipment acquired in connection with acquisitions are recorded at fair value as of the date of the acquisition and depreciated utilizing the straight-line method over the estimated remaining useful lives. All other additions are recorded at cost, and depreciation is computed using the straight-line method. The Company reviews the estimated useful lives of its fixed assets on an ongoing basis.The estimated useful lives of property and equipment are principally as follows:Buildings40 yearsEquipment3 to 7 yearsFurniture and fixtures7 yearsSoftware3 to 5 yearsFinance lease assets and leasehold improvementsShorter of the estimated useful life or lease term, considering renewal options expected to be exercised.The following is a summary of property and equipment, net:As ofJune 30,2025December 31,2024(in millions)Equipment$253.3 $4.0 Finance lease assets190.5 — Leasehold improvements118.0 0.1 Furniture and fixtures27.7 0.2 Software29.1 — Land and buildings59.4 — Fixed assets in progress40.0 — Total property and equipment718.0 4.3 Accumulated depreciation(21.7)(3.9)Total property and equipment, net$696.3 $0.4 GoodwillOn an annual basis and at interim periods when circumstances require, the Company tests the recoverability of its goodwill and indefinite-lived intangible assets and reviews for indicators of impairment. Examples of such indicators include a significant change in the business climate, legal factors, operating performance indicators, competition, sale or disposition of a significant portion of the business or other factors. The following table sets forth the change in the carrying amount of goodwill during the six months ended June 30, 2025: (in millions)June 30,2025Balance at beginning of period$1.2 Acquisitions5,138.6 Translation and other adjustments(1.9)Balance at end of period$5,137.9 

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Intangible AssetsThe Company amortizes certain identifiable intangible assets that have finite lives, currently consisting of customer relationships and trade