Company: VRT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001628280-25-005905
Chunk: 46

Company: Vertiv Holdings Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 16
Chunk 46
---
9)Reductions for settlements with tax authorities— (4.1)— Reductions for expirations of statute of limitations(12.6)(16.3)(1.6)Ending balance$149.1 $102.5 $97.0 The total amount of net unrecognized tax benefits that would affect income tax expense, if recognized in the Consolidated Financial Statements, is $106.8. In addition, an adjustment of $8.0 would result to other expense for reversal of the indemnification receivable. The Company accrues interest and penalties related to income taxes in income tax expense. As of December 31, 2024, 2023, and 2022, total accrued interest and penalties were $19.2, $19.0, and $18.0, respectively.Eligible domestic subsidiaries file a consolidated U.S. Federal income tax return. Examinations by the U.S. Internal Revenue Service are complete through the December 1, 2016 date of separation with Emerson, with the limited exception of 2014. The status of state and non-U.S. tax examinations varies due to the numerous legal entities and jurisdictions in which the Company operates. As noted above, pursuant to the terms of the transactions, Emerson and E&I will indemnify the Company for certain tax assessments for periods prior to closing. The change in the income tax valuation allowance is as follows: December 31, 2024December 31, 2023December 31, 2022Beginning balance$146.8 $250.4 $241.6 Additions (reductions) charged to expense633.4 (100.4)33.6 Reductions charged to other accounts(46.4)(3.2)(24.8)Ending balance$733.8 $146.8 $250.4 For the year ended December 31, 2024, the Company recorded a net valuation allowance change primarily related establishment of a valuation allowance on certain non-US tax credits that was partially offset by a valuation allowance release related to certain U.S. federal foreign tax credits and certain non-US tax losses. Of the total $587.0 total movement, $633.4 was charged to income tax expense, with the remaining $46.4 reduction related to foreign currency translation recorded through Other Comprehensive Income. For the year ended December 31, 2023, the Company recorded a valuation allowance release of $103.4