Company: MGRC
Filing Date: 2025-02-19
Form Type: 10-K
Source: 0000950170-25-023116
Chunk: 18

Company: MCGRATH RENTCORP
Filing Date: 2025-02-19
Form: 10-K
Item: Item 8
Chunk 18
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        2025
         
        $
        177,149

        2026

        65,257

        2027

        27,516

        2028

        11,405

        2029

        3,838

        Thereafter

        943

        $
        286,108

       In the year ended December 31, 2024, the Company’s lease revenues from continuing operations were $591.9 million, consisting of $589.3 million of operating lease revenues and $2.6 million of finance lease revenues.  The Company has entered into finance leases to finance certain equipment sales to customers.  The lease agreements have a bargain purchase option at the end of the lease term.  For these leases, sales revenue and the related accounts receivable are recognized upon delivery and installation of the equipment and the unearned interest is recognized over the lease term on a basis which results in a constant rate of return on the unrecovered lease investment.  For the year ended December 31, 2024, the Company’s finance lease revenues included $2.0 million of sales revenues and $0.6 million of interest income.  The minimum lease payments receivable and the net investment are included in Accounts receivable on the Company’s Consolidated Balance Sheet for such leases, which were as follows:   

        (in thousands)
         
        December 31, 2024

        Gross minimum lease payments receivable
         
        $
        8,543

        Less – unearned interest

        (1,874
        )

        Net investment in finance lease receivables
         
        $
        6,669

       As of December 31, 2024, the future minimum lease payments under non-cancelable finance leases to be received in 2025 and thereafter were as follows:  

-74-

        (in thousands)

        Year Ended December 31,

        2025
         
        $
        2,541

        2026

        1,251

        2027

        1,012

        2028

        1,063

        2029

        802

        Total minimum future lease payments to be received
         
        $
        6,669

NOTE 7. REVENUE RECOGNITIONThe Company’s accounting for revenues is governed by two accounting standards.  The majority of