Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

Beginning in the first quarter of 2021, the primary income measure used for assessing segment performance and making operating decisions is operating profit (loss). Segment performance is assessed exclusive of Corporate and other costs, foreign currency gain (loss), and amortization of intangibles. Corporate and other costs primarily include headquarters management costs, stock-based compensation, other incentive compensation, global IT costs, change in warrant liabilities, asset impairments, and costs that support global product platform development and offering management.

Vertiv determines its reportable segments based on how operations are managed internally for the products and services sold to customers, including how the results are reviewed by the chief operating decision maker (CODM), which includes determining resource allocation methodologies used for reportable segments. During the first quarter of 2021 we reorganized our internal reporting and realigned our operating segment structure to how our CODM, our Chief Executive Officer, now allocates resources and makes decisions. The changes resulted in the identification of two new operating segments, 1) North Asia and 2) Australia & New Zealand, South East Asia and India (ASI) which previously were reported as our legacy Asia Pacific operating segment. Given the similarities of economic characteristics and other qualitative factors, we aggregate these operating segments, such that our reportable segments are unchanged.

In conjunction with the realignment, the Company concluded the new operating segments also comprised reporting units and the company tested goodwill for impairment for each reporting unit both immediately before and immediately after the business realignment. The Company allocated goodwill to the two new reporting units based on their relative fair value.

The goodwill impairment tests under both the legacy and new reporting unit structures concluded that no impairment existed during the first quarter of fiscal 2021.

Summarized information about the Company’s results of operations by reportable segment and product and service offering follows:

Americas includes products and services sold for applications within the data center, communication networks and commercial/industrial markets in North America and Latin America. This segment’s principal product and service offerings include:

•Critical infrastructure & solutions includes AC and DC power management, thermal management, and modular hyperscale type data center sites.

•Integrated rack solutions includes racks, rack power, rack power distribution, rack thermal systems, and configurable integrated solutions; and hardware for managing I.T. equipment.

•Services & spares includes preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software.

Asia Pacific includes products and services sold for applications within the data center, communication networks and commercial/industrial markets throughout North Asia and ASI. Products and services offered are similar to the Americas segment.

Europe, Middle East & Africa includes products and services sold for applications within the data center, communication networks and commercial/industrial markets in Europe, Middle East & Africa. Products and services offered are similar to the Americas segment.

Reportable Segments

Sales	Three months ended March 31, 2021		Three months ended March 31, 2020
Americas	$	505.9	$	469.4
Asia Pacific	377.6		239.1
Europe, Middle East & Africa	250.4		217.7
	1,133.9		926.2
Eliminations	(35.5)		(28.9)
Total	$	1,098.4	$	897.3

Intersegment sales (1)	Three months ended March 31, 2021		Three months ended March 31, 2020
Americas	$	4.4	$	2.7
Asia Pacific	20.2		15.2
Europe, Middle East & Africa	10.9		11.0
Total	$	35.5	$	28.9

(1)Intersegment selling prices approximate market prices.

Operating profit (loss) (1)	Three months ended March 31, 2021		Three months ended March 31, 2020
Americas	$	126.4	$	91.5
Asia Pacific	53.1		20.9
Europe, Middle East & Africa	33.4		20.8
Total reportable segments	212.9		133.2
Foreign currency gain (loss)	6.9		(1.8)
Corporate and other	(108.2)		(111.2)
Total corporate, other and eliminations	(101.3)		(113.0)
Amortization of intangibles	(31.8)		(32.4)
Operating profit (loss)	$	79.8	$	(12.2)

(1)Beginning in the first quarter of 2021, operating profit (loss) is the primary income measure used for assessing segment performance and making operating decisions. Comparative results for the three months ended March 31, 2020 have been presented in conformity with the updated format.

Total Assets	March 31, 2021		December 31, 2020
Americas	$	2,150.3	$	2,165.8
Asia Pacific	1,326.5		1,289.1
Europe, Middle East & Africa	987.9		1,070.0
	4,464.7		4,524.9
Corporate and other	696.7		548.9
Total	$	5,161.4	$	5,073.8

Sales by Products and Services Offering	Three months ended March 31, 2021		Three months ended March 31, 2020
Critical infrastructure & solutions	$	627.9	$	461.5
Services & spares	321.8		306.3
Integrated rack solutions	148.7		129.5
Total	$	1,098.4	$	897.3