Supplemental Financial Statement Information

12 Months Ended

Dec. 31, 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 $15.7 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 with a balance of $7.3 million at December 31, 2023. The Company is restricted from withdrawing this balance without the prior consent of the sellers. The remaining restricted cash balance of $8.4 million represents collateral for certain borrowings under the 2023 Amended Credit Agreement, and the Company is restricted from withdrawing this balance without the prior consent of the respective lenders.

Property, Plant and Equipment, net

Components of property, plant and equipment, net were as follows:

	December 31,
(in thousands)	2023		2022
Land	$	16,916	$	9,578
Buildings and improvements	50,376		27,199
Machinery and equipment	48,844		26,948
Capitalized software	9,148		7,889
Furniture and fixtures	11,022		6,346
Vehicles	1,738		1,713
Construction in progress(1)	6,025		3,140
Total	144,069		82,813
Accumulated depreciation and amortization	(30,258)		(18,418)
Property, plant and equipment, net	$	113,811	$	64,395

(1)    Construction in progress primarily relates 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 $13.1 million in 2023 and $6.5 million in 2022. Amortization expense for capitalized software was $2.6 million in 2023 and $1.6 million in 2022.

Rental Equipment, net

Rental equipment, net consisted of the following:

	December 31,
(in thousands)	2023		2022
Rental equipment	$	52,387	$	63,184
Accumulated depreciation	(27,812)		(36,045)
Rental equipment, net	$	24,575	$	27,139

Depreciation expense included in cost of sales for rental equipment was $7.6 million and $8.0 million for 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:

	December 31,
(in thousands)	2023		2022
Accrued compensation	$	25,371	$	24,094
Accrued severance and acquisition related retention bonus	21,128		927
Accrued and withheld taxes, other than income taxes	8,661		4,885
Deferred acquisition payments and accrued earnout liabilities	7,513		1,383
Accrued stock-based compensation	5,573		3,340
Accrued customer rebates	5,473		5,053
Accrued interest	3,301		1,775
Accrued income taxes	1,994		731
Accrued health benefits	1,728		1,306
Deferred revenue	810		2,313
Other	15,689		16,870
Total accrued expenses and other current liabilities	$	97,241	$	62,677

Other Liabilities

Other liabilities consisted of the following:

	December 31,
(in thousands)	2023		2022
Security bonus plan	$	8,666	$	9,651
Deferred compensation	11,041		9,962
Other	5,736		4,036
Total other liabilities	$	25,443	$	23,649

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 Lawson 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 $0.2 million for the year ended December 31, 2023. The security bonus plan is partially funded by an $8.2 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 Sheets. As of December 31, 2023, the $8.9 million liability is primarily included in the Security bonus plan in the Consolidated Balance Sheets with the remaining portion included in Accrued expenses and other current liabilities in the Consolidated Balance Sheets.