Supplemental Financial Statement Information

3 Months Ended

Mar. 31, 2023

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:

(in thousands)	March 31, 2023		December 31, 2022
Inventories, gross	$	282,837	$	275,072
Reserve for obsolete and excess inventory	(12,856)		(10,698)
Inventories, net	$	269,981	$	264,374

Changes in the reserve for obsolete and excess inventory were as follows:

(in thousands)	Amount
Balance at December 31, 2022	$	(10,698)
Provision charged to expense (net)	(2,198)
Write-offs	40
Balance at March 31, 2023	$	(12,856)

Property, Plant and Equipment, net

Components of property, plant and equipment were as follows:

(in thousands)	March 31, 2023		December 31, 2022
Land	$	9,595	$	9,578
Buildings and improvements	27,872		27,199
Machinery and equipment	28,853		26,948
Capitalized software	8,355		7,889
Furniture and fixtures	7,166		6,346
Vehicles	1,715		1,713
Construction in progress(1)	3,013		3,140
Total	86,569		82,813
Accumulated depreciation and amortization	(22,136)		(18,418)
Property, plant and equipment, net	$	64,433	$	64,395

(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 $3.5 million and $0.6 million for the first quarter of 2023 and 2022, respectively. Amortization expense for capitalized software was $0.7 million and $0.2 million for the first quarter of 2023 and 2022, respectively.

Rental Equipment, net

Rental equipment, net consisted of the following:

(in thousands)	March 31, 2023		December 31, 2022
Rental equipment	$	63,546	$	63,184
Accumulated depreciation	(36,378)		(36,045)
Rental equipment, net	$	27,168	$	27,139

Depreciation expense included in cost of sales for rental equipment was $2.3 million and $1.7 million for the first quarter of 2023 and 2022, respectively. Refer to Note 4 – Revenue Recognition for a discussion on the Company's activities as lessor.

Other Liabilities

Other liabilities consisted of the following:

(in thousand)	March 31, 2023		December 31, 2022
Security bonus plan	$	9,769	$	9,651
Deferred compensation	10,321		9,962
Other	4,322		4,036
Total other liabilities	$	24,412	$	23,649