Company: MGRC
Filing Date: 2025-04-17
Form Type: CORRESP
Source: 0000950170-25-055353
Chunk: 4

Company: MCGRATH RENTCORP
Filing Date: 2025-04-17
Form: CORRESP
Chunk 4
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 taxes paid in cash on sale of discontinued operations and the contractual merger termination payment from WillScot Mobile Mini after deducting the Company’s transaction costs. Please refer to our response to question 3 above for an illustration of the revised disclosure and table.

Securities and Exchange Commission

April 17, 2025
Page5

For the proceeds from sale of discontinued operation, net of tax for 2023 shown here, please explain to us if the tax amount is as accrued or paid. If paid, explain to us how you determined the amount paid; if accrued, explain to us why it is appropriate for this table that purports to represent cash availability.

Company’s Response:

The proceeds from sale of the Adler Tanks discontinued operation of $202,706 was net of income tax paid during 2023. In consultation with our tax advisors, management estimated the required federal and state income tax payments that were due to be paid before December 15, 2023.

For 2024 you disclose proceeds from Willscot Mobile Mini merger termination, net of transaction costs of $116,841. This net amount is reported in net income, and net income is included in the cash provided by operating activities, so it appears this amount may be double counted in determining cash available in this table. Please advise.

Company’s Response:

In future filings with the Commission, we advise Staff that beginning with the Company’s Form 10-K for the period ending December 31, 2025, reference to the net proceeds from the Willscot Mobile Mini termination will be appropriately included in the table reconciling Cash provided by operating activities to Adjusted free cash flow. Please refer to our response to question #3 above for an illustration of the revised table.

Notes to Consolidated Financial Statements

Note 16. Segment Reporting, page 87

You mention your chief operating decision maker ("CODM") evaluates and assesses various factors regarding the performance of segments and allocation of resources but it appears you do not discuss how the CODM uses the reported segment measures of profit or loss in assessing performance and allocating resources pursuant to ASC 280-10-50-29.f. Please revise accordingly. Refer to the example in ASC 280-10-55-47.bb for guidance.

Company’s Response:

In future filings with the Commission, we advise Staff that beginning with the Company’s Form 10-Q for the period ended March 31, 2025, the Segment Reporting footnote to the Company’s financial statements will include additional discussion explaining the resource allocation process