Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 17

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 17
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 Cash paid for amounts included in the measurement of lease liabilities:

           Operating cash flows from operating leases
         
        $
        6,035

        $
        6,441

        Right of use assets obtained in exchange for lease obligations:

           Operating leases
         
        $
        6,248

        $
        10,058

       As of December 31, 2024, maturities of operating lease liabilities were as follows: 

-73-

        (in thousands)

        Year ended December 31,

        2025
         
        $
        5,735

        2026

        3,063

        2027

        2,042

        2028

        1,355

        2029

        541

        Thereafter

        894

           Total lease payments

        13,630

        Less: imputed interest

        (1,013
        )

        $
        12,617

       LessorThe Company’s equipment rentals for each of its operating segments are governed by agreements that detail the lease terms and conditions.  The determination of whether these contracts with customers contain a lease generally does not require significant judgement.  The Company accounts for these rentals as operating leases.  These leases do not include material amounts of variable payments and the Company has made the accounting policy election to exclude all taxes assessed by a governmental authority.  The Company generally does not provide an option for the lessee to purchase the rented equipment at the end of the lease term, thus, does not generate material revenue from sales of equipment under such options.  Initial lease terms vary in length based upon customer needs and generally range from one to sixty months.  Customers have the option to keep equipment on rent beyond the initial lease term on a month-to month basis based upon their needs.  All of the Company’s rental products have long useful lives relative to the typical rental term with the original investment typically recovered in approximately three to five years.  The rental products are typically rented for a majority of the time owned and a significant portion of the original investment is recovered when sold from inventory.  The Company’s lease agreements do not contain residual value guarantees or restrictive covenants.As of December 31, 2024, maturities of operating lease payments to be received in 2025 and thereafter were as follows: 

        (in thousands)

        Year Ended December 31,