Inventory step-up: what is special compared with a PP&E step-up?

Inventory step-up is usually short-lived. The fair-value uplift is expensed through COGS as the inventory is sold, often within the first year, so it creates a temporary gross-margin and EBIT drag. PP&E step-up is depreciated over years. In modeling tests, do not spread inventory step-up over a long useful life.