RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2022

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

(9) RELATED PARTY TRANSACTIONS

Transactions with Affiliates of Advisors

The Company purchased and sold goods in the ordinary course of business with affiliates of Platinum Equity Advisors, LLC. For the three and nine months ended September 30, 2022 and 2021 purchases were $34.8 and $104.1, $24.8 and $64.9, respectively. For the three and nine months ended September 30, 2022 and 2021 sales were $21.8 and $72.9, $45.8 and $45.9, respectively. Accounts payable were $1.7 and $3.9 as of September 30, 2022 and December 31, 2021, respectively. Accounts receivable were $16.5 and $42.9 as of September 30, 2022 and December 31, 2021, respectively.

Tax Receivable Agreement

On December 31, 2021, the Company and an affiliate of Platinum Equity Advisors, LLC (the “Vertiv Stockholder”) agreed to amend and supplement the tax receivable agreement entered into by the Company and the Vertiv Stockholder on February 7, 2020, (the “Tax Receivable Agreement”) to replace the Company’s remaining payment obligations under the Tax Receivable Agreement with an obligation to pay $100 in cash in two equal installments. The first installment payment was scheduled to be on or before June 15, 2022 and the second payment was scheduled to be due on or before September 15, 2022. On June 15, 2022, the Company and the Vertiv Stockholder agreed to further amend the payment schedule under the Tax Receivable Agreement into three installment payments, wherein the first installment payment of $12.5 became due and was paid on June 15, 2022, the second installment of $12.5 became due and was paid on September 15, 2022, and the third installment of $75 will be due on or before November 30, 2022. Upon receipt of the third installment payment, the Tax Receivable Agreement will terminate and the Company will not be required to make any further payments to the Vertiv Stockholder under the Tax Receivable Agreement.

For the three and nine months ended September 30, 2021, the Company recorded $1.6 and $3.3, respectively, of accretion expense in “Interest expense, net” in the Unaudited Condensed Consolidated Statement of Earnings (Loss). For the three and nine months ended September 30, 2021, an unrealized gain (loss) of $2.2 and $(3.1) was recorded in “Accumulated other comprehensive income (loss), net” in the Unaudited Condensed Consolidated Balance Sheets, related to the change in fair value of the tax receivable liability.