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Financial Instruments and Risk Management (Tables)

6 Months Ended

Jun. 30, 2020

Summary of Financial Instruments Recognized at Fair Value

A summary of the Company's financial instruments recognized at fair value, and the fair value measurements used, follows:


	Total	Quoted prices in active markets for identical assets (Level 1)	Other observable inputs (Level 2)	Unobservable inputs (Level 3)
June 30, 2020
Tax Receivable Agreement	133.3	—	—	133.3
Interest rate swaps	35.5	—	35.5	—

Summary of the Change in Value for the Tax Receivable Agreement

Details of the changes in value for the Tax receivable agreement are as follows:


Beginning liability balance, January 1, 2020	$	—
Tax receivable agreement, initially recorded	133.4
Change in fair value	(0.1)
Ending liability balance, June 30, 2020	$	133.3

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

The following table presents the estimated fair value and carrying value of long-term debt, including the current portion of long-term debt as of June 30, 2020 and December 31, 2019.


	June 30, 2020 ⁽¹⁾						December 31, 2019
	Fair Value		Par Value ⁽²⁾		Fair Value		Par Value ⁽²⁾
Term Loan due 2027	$	2,079.3	$	2,194.5	$	—	$	—
ABL Revolving Credit Facility due 2025	269.9		269.9		145.2		145.2
Short-term borrowings	20.2		20.2		—		—
Term Loan due 2023	—		—		2,064.8		2,070.0
9.250% Notes due 2024	—		—		805.3		750.0
12.00%/13.00% Senior PIK Toggle Notes due 2022	—		—		517.5		500.0
10.00% Notes due 2024	—		—		127.5		120.0

(1)On March 2, 2020, certain subsidiaries of Vertiv Holdings Co entered into a Term Loan Credit Agreement with various financial institutions for $2,200.0 of senior secured term loans. The proceeds of the Term Loan were used to repay or redeem in full certain outstanding indebtedness. See Note 6, Debt for additional information.

(2)See Note 6 — Debt for additional information