Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 22

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 22
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 equipment prior to the end of the rental contract term are typically billed a cancellation fee, which is recorded as rental revenue in the period billed.  Sales of new relocatable modular buildings, portable storage containers, electronic test equipment and related accessories and liquid and solid containment tanks and boxes 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 

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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.   The Company’s incremental cost of obtaining lease contracts, which consists of salesperson commissions, are deferred and amortized over the initial lease term for modular building leases.  Incremental costs for obtaining a contract for all other operating segments are expensed in the period incurred because the lease term is typically less than 12 months.Other Income, netOther income, net consists of the net gain on sales of property, plant and equipment. These sales are generally recognized at a point in time, with contractually defined performance obligations that are typically transferred upon the closing date of the sale.  These types of sales are infrequent in occurrence and reported on the consolidated statements of income within the scope of ASC 610, Other Income.  Proceeds to be received from the sale of property, plant and equipment are included in Accounts receivable on the Company's consolidated balance sheets.

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NOTE 8. NOTES PAYABLENotes payable consists of the following: 

        (in thousands)
         
        December 31,

        2024

        2023

        Unsecured revolving lines of credit and term loan
         
        $
        415,440

        $
        588,000

        2.35% Series E senior notes due in 2026

        60,000

        60,000

        2.57% Series D senior notes due in 2028

        40,000

        40,000

        6.25% Series F senior notes due in 2030

        75,000

        75,000

        590,440

        763,000

        Unamortized debt issuance cost

        (232
        )

        (25
        )

        $
        590