Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 4

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 4
---
,706

          Less: accumulated depreciation

          (91,042
          )

          (87,399
          )

          182,339

          154,307

          Construction in progress

          15,100

          14,807

          $
          197,439

          $
          169,114

         Property, plant and equipment depreciation expense was $8.9 million, $9.7 million and $9.0 million for the years ended December 31, 2024, 2023 and 2022, respectively.  Construction in progress at December 31, 2024 and 2023 consisted primarily of costs related to acquisition of land and land improvements.  For information on the property, plant and equipment from discontinued operations, refer to Note 5 to the consolidated financial statements.Capitalized Software CostsThe Company capitalizes certain development costs incurred in connection with its internal use software.  Costs incurred in the preliminary stages of development are expensed as incurred.  Once an application has reached the development stage, direct internal and external costs are capitalized until the software is substantially complete and ready for its intended use.  These costs generally include external direct costs of materials and services consumed in the project and internal costs, such as payroll and benefits of those employees directly associated with the development of the software.  Maintenance, training and post implementation costs are expensed as incurred.  The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality.  Capitalized software costs are included in property, plant and equipment.  There were no capitalized internal use software costs during the year ended December 31, 2024, and the Company capitalized $0.2 million in internal use software during the year ended December 31, 2023. Shipping CostsThe Company includes third party costs to deliver rental equipment to customers in costs of rental related services and costs of sales. Advertising CostsAdvertising costs are expensed as incurred.  Total advertising expenses were $6.2 million, $5.9 million and $5.0 million for the years ended December 31, 2024, 2023 and 2022.  Income TaxesIncome taxes are accounted for using an asset and liability approach.  Deferred tax assets and liabilities are recorded for the effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements.  Deferred tax assets and deferred tax liabilities are adjusted to the extent necessary