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Supplemental Financial Statement Information
 9 Months Ended
Sep. 30, 2023
Condensed Financial Information Disclosure [Abstract]  
Supplemental Financial Statements Information
Note 5 – Supplemental Financial Statement Information

Restricted Cash

The Company has agreed to maintain restricted cash of $20.7 million under agreements with outside parties. An escrow account of $12.5 million was established in conjunction with the Hisco Transaction, to be released upon Hisco meeting certain working capital and other post-closing requirements as of the one year post-acquisition date. The Company is restricted from withdrawing this balance without the prior consent of the sellers. The remaining balance of $8.2 million of restricted cash represents collateral for certain borrowings under the 2023 Credit Agreement, and the Company is restricted from withdrawing this balance without the prior consent of the respective lenders.

Inventories, net

Inventories, net, consisting of purchased products and manufactured electronic equipment offered for resale, were as follows:
(in thousands)September 30, 2023December 31, 2022
Inventories, gross$329,221 $275,072 
Reserve for obsolete and excess inventory(15,884)(10,698)
Inventories, net$313,337 $264,374 
Property, Plant and Equipment, net

Components of property, plant and equipment were as follows:
(in thousands)September 30, 2023December 31, 2022
Land$16,753 $9,578 
Buildings and improvements50,009 27,199 
Machinery and equipment48,235 26,948 
Capitalized software9,140 7,889 
Furniture and fixtures10,707 6,346 
Vehicles1,703 1,713 
Construction in progress(1)
3,804 3,140 
Total140,351 82,813 
Accumulated depreciation and amortization(28,402)(18,418)
Property, plant and equipment, net$111,949 $64,395 
(1)Construction in progress primarily related to upgrades to certain of the Company's information technology systems that we expect to place in service in the next 12 months.

Depreciation expense for property, plant and equipment was $3.5 million and $1.1 million for the third quarter of 2023 and 2022, respectively, and $9.5 million and $4.0 million for the first nine months of 2023 and 2022, respectively. Amortization expense for capitalized software was $0.5 million and $0.0 million for the third quarter of 2023 and 2022, respectively, and $2.0 million and $1.0 million for the first nine months of 2023 and 2022, respectively.

Rental Equipment, net

Rental equipment, net consisted of the following:
(in thousands)September 30, 2023December 31, 2022
Rental equipment$63,310 $63,184 
Accumulated depreciation(36,990)(36,045)
Rental equipment, net$26,320 $27,139 

Depreciation expense included in cost of sales for rental equipment was $1.7 million and $2.3 million for the third quarter of 2023 and 2022, respectively and $5.9 million and $5.4 million for the first nine months of 2023 and 2022, 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:
(in thousands)September 30, 2023December 31, 2022
Accrued compensation$27,532 $24,094 
Deferred acquisition payments and accrued earnout liabilities16,461 1,383 
Accrued severance and acquisition related retention bonus12,648 927 
Accrued and withheld taxes, other than income taxes8,758 4,885 
Accrued stock-based compensation5,055 3,340 
Accrued customer rebates4,710 5,053 
Accrued interest3,592 1,775 
Accrued health benefits1,743 1,306 
Deferred revenue1,136 2,313 
Accrued income taxes734 731 
Other14,822 16,870 
Total accrued expenses and other current liabilities$97,191 $62,677 

Other Liabilities

Other liabilities consisted of the following:
(in thousands)September 30, 2023December 31, 2022
Security bonus plan$9,109 $9,651 
Deferred compensation10,854 9,962 
Other4,658 4,036 
Total other liabilities$24,621 $23,649