Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 36

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 36
---
  Insurance providers are responsible for making claim payments that exceed these amounts on an individual claim basis.  In addition, the Company has stop loss insurance that pays for claim payments made during a twelve month coverage period that exceeds certain specified thresholds in the aggregate.  The Company records an expense when health and workers compensation claim payments are made and accrues for the portion of claims incurred, but not yet paid at period end.  The Company makes these accruals based upon a combination of historical claim payments, loss development experience and actuarial estimates.  A high degree of judgment is required in developing the underlying assumptions and the resulting amounts to be accrued.  In addition, our assumptions will change as the Company’s loss experience develops.  All of these factors have the potential to impact the amounts previously accrued and the Company may be required to increase or decrease the amounts previously accrued.  At December 31, 2024 and 2023, accruals for the Company’s health and workers’ compensation high deductible plans were $1.7 million and $1.6 million, respectively.

-85-

NOTE 13. INVENTORIESThe following table presents the carrying value of inventories: 

        (dollar amounts in thousands)
         
        December 31,

        December 31,

        2024

        2023

        Raw materials
         
        $
        3,380

        $
        3,806

        Work-in-process

        10,924

        11,619

        Inventories
         
        $
        14,304

        $
        15,425

NOTE 14. GOODWILL AND INTANGIBLE ASSETSThere were no changes in the carrying amount of goodwill during 2024.  Changes in the carrying amount of goodwill during 2023 were as follows: 

        (dollar amounts in thousands)
         
        Mobile Modular

        Adler Tanks (Discontinued)

        Total

        Balance at December 31, 2022
         
        $
        106,403

        $
        25,902

        $
        132,305

        Goodwill acquired through business combination

        216,821

        —

        216,821

        Derecognition of goodwill divested

        —

        (25,902
        )

        (25,902
        )

        Balance at December 31, 2023
         
        $
        323,224