Company: MGRC
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0000950170-25-098322
Chunk: 7

Company: MCGRATH RENTCORP
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 1
Chunk 7
---
21,113
Sales 62,974 2,956 13,866 27,079 106,875
Other 70 169 694 - 933
Total non-lease 75,171 10,637 16,034 27,079 128,921
Total revenues $ 287,906 $ 44,612 71,435 27,079 431,032
2024
Leasing $ 196,754 $ 37,395 52,656 - 286,805
Non-lease:
Rental related services 10,999 8,738 1,332 - 21,069
Sales 61,256 2,478 11,757 13,092 88,583
Other 3,122 171 688 - 3,981
Total non-lease 75,377 11,387 13,777 13,092 113,633
Total revenues $ 272,131 $ 48,782 66,433 13,092 400,438
Customer returns of rental 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 and electronic test equipment not manufactured by the Company are typically covered by warranties provided by the manufacturer of the products sold. The Company typically provides limited90-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, warranty costs have not been significant to date.
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 and portable storage leases. Incremental costs for obtaining a contract for TRS-RenTelco are expensed in the period incurred because the lease term is typically less than 12 months.

Other Income, net
Other 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 condensed 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