Company: VRT
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001628280-25-005905
Chunk: 14

Company: Vertiv Holdings Co
Filing Date: 2025-02-18
Form: 10-K
Item: Item 16
Chunk 14
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 allowance for credit losses is as follows: Year Ended December 31, 202420232022Beginning balance$29.1 $18.4 $14.1 Provision charged to expense1.6 11.3 5.6 Deductions(8.3)(0.6)(1.3)Ending balance$22.4 $29.1 $18.4 Inventories Inventories are stated at the lower of cost, using the first-in, first-out method, or net realizable value and the majority is valued based on standard costs. The remainder is valued based on average actual costs. Standard costs are revised at the beginning of each fiscal year. The impact from annually resetting standards, as well as operating variances incurred throughout the year, are allocated to inventories and recognized in cost of sales as product is sold. The following are the components of inventory:December 31, 2024December 31, 2023InventoriesFinished products$400.8 $261.6 Raw materials564.7 484.3 Work in process278.9 138.4 Total inventories$1,244.4 $884.3 The change in inventory obsolescence is as follows:December 31, 2024December 31, 2023December 31, 2022Beginning balance$59.0 $56.0 $56.2 Provision charged to expense46.7 28.8 30.1 Write-offs and other(31.9)(25.8)(30.3)Ending balance$73.8 $59.0 $56.0 Fair Value MeasurementAccounting Standards Codification (“ASC”) 820, Fair Value Measurement, establishes a formal hierarchy and framework for measuring certain financial statement items at fair value, and requires disclosures about fair value measurements and the reliability of valuation inputs. Under ASC 820, measurement assumes the transaction to sell an asset or transfer a liability occurs in the principal or at least the most advantageous market for that asset or liability. Within the hierarchy, Level 1 instruments use observable market prices for the identical item in active markets and have the most reliable valuations. Level 2 instruments are valued through broker/dealer quotation or through market-observable inputs for similar items in active markets, including forward and spot prices, interest rates and volatilities. Level 3 instruments are valued using inputs not observable in an active market