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Supplemental Financial Statement Information
 12 Months Ended
Dec. 31, 2022
Condensed Financial Information Disclosure [Abstract]  
Supplemental Financial statements Information
Note 5 – Supplemental Financial Statement Information

Inventories, net

Inventories, net, consisting of purchased goods and manufactured electronic equipment offered for resale, were as follows:
December 31,
(in thousands)20222021
Inventories, gross$275,072 $140,544 
Reserve for obsolete and excess inventory(10,698)(7,827)
Inventories, net$264,374 $132,717 

Changes in the reserve for obsolete and excess inventory were as follows:
December 31,
(in thousands)20222021
Balance at beginning of period$(7,827)$(7,895)
Provision charged to expense (net)(6,547)(1,224)
Write-offs3,676 1,292 
Balance at end of period$(10,698)$(7,827)
Property, Plant and Equipment, net

Components of property, plant and equipment, net were as follows:
December 31,
(in thousands)20222021
Land$9,578 $1,700 
Buildings and improvements27,199 2,930 
Machinery and equipment26,948 4,389 
Capitalized software7,889 3,407 
Furniture and fixtures6,346 2,700 
Vehicles1,713 798 
Construction in progress(1)
3,140 12 
Total82,813 15,936 
Accumulated depreciation and amortization(18,418)(6,857)
Property, plant and equipment, net$64,395 $9,079 
(1)    Construction in progress primarily relates to upgrades to certain of the Company's distribution facilities that we expect to place in service in the next 12 months.

Depreciation expense for property, plant, and equipment was $6.5 million in 2022 and $1.2 million in 2021. Amortization expense for capitalized software was $1.6 million in 2022 and $0.7 million in 2021.

Rental Equipment, net

Rental equipment, net consisted of the following:
December 31,
(in thousands)20222021
Rental equipment$63,184 $45,774 
Accumulated depreciation(36,045)(21,047)
Rental equipment, net$27,139 $24,727 

Depreciation expense included in cost of sales for rental equipment was $8.0 million and $6.3 million for 2022 and 2021, respectively. Refer to Note 4 – Revenue Recognition for a discussion on the Company's activities as lessor.
Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:
December 31,
(in thousands)20222021
Accrued compensation$24,169 $5,997 
Accrued customer rebates5,053 2,657 
Accrued and withheld taxes, other than income taxes4,885 880 
Accrued stock-based compensation3,340 — 
Deferred revenue2,313 485 
Accrued interest1,775 1,515 
Accrued health benefits1,306 59 
Accrued severance852 — 
Accrued income taxes731 4,170 
Other18,253 7,363 
Total accrued expenses and other current liabilities$62,677 $23,126 

Security Bonus Plan

The Company has a security bonus plan which was previously created for the benefit of its Lawson independent sales representatives, under the terms of which participants are credited with a percentage of their annual net commissions. The aggregate amounts credited to participants’ accounts vest 25% after five years, and an additional 5% vests each year thereafter upon qualification for the plan. On January 1, 2013, the Company converted all of its U.S. independent sales representatives to employees. The security bonuses for those converted employees continue to vest, but their accounts are no longer credited with a percentage of net commissions. For financial reporting purposes, amounts are charged to operations over the vesting period. Expenses incurred for the security bonus plan were $0.1 million for the year ended December 31, 2022. The security bonus plan is partially funded by an $8.0 million investment in the cash surrender value in life insurance of certain employees which is included as a component of Cash value of life insurance in the Consolidated Balance Sheet. As of December 31, 2022, the $9.7 million liability is included in the Security bonus plan in the Consolidated Balance Sheet.