Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 3

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 3
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 the carrying value of the equipment sold and all direct costs associated with the sale.Warranty ReservesSales of new relocatable modular buildings, portable storage containers, electronic test equipment and related accessories not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold.  The Company typically provides limited 90-day warranties for certain sales of used rental equipment and one-year warranties on equipment manufactured by Enviroplex.  Although the Company’s policy is to provide reserves for warranties when required for specific circumstances, the Company has not found it necessary to establish such reserves to date as warranty costs have not been significant.InventoriesInventories consist of raw materials  and work-in-process.  Inventories are measured at the lower of actual cost or net realizable value  for acquired units and estimated standard costs for manufactured units.  Net realizable value is defined as the value for which an asset can be sold, less the estimated costs of selling such asset.  The costs include expenditures incurred in acquiring the inventories, manufacturing, production costs, and other costs incurred in bringing them to their existing location and condition .

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Property, Plant and EquipmentProperty, plant and equipment are stated at cost, net of accumulated depreciation.  Depreciation is recognized on a straight-line basis for financial reporting purposes, and on an accelerated basis for income tax purposes.  Depreciation expense for property, plant and equipment is included in “Selling and administrative expenses” and “Rental related services” in the Consolidated Statements of Income.  Maintenance and repairs are expensed as incurred.Property, plant and equipment from continuing operations consist of the following: 

          (dollar amounts in thousands)
           
          Estimated useful life
           
          December 31,

          in years
           
          2024

          2023

          Land
           
          Indefinite
           
          $
          88,605

          $
          75,143

          Land improvements
           
          20 – 50

          77,221

          65,931

          Buildings
           
          30

          40,223

          35,360

          Furniture, office equipment and software
           
          3 – 10

          28,073

          30,039

          Vehicles and machinery
           
          5 – 25

          39,259

          35,233

          273,381

          241