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Supplemental Financial Statement Information
 6 Months Ended
Jun. 30, 2024
Condensed Financial Information Disclosure [Abstract]  
Supplemental Financial Statement Information
Note 5 – Supplemental Financial Statement Information

Restricted Cash

The Company has agreed to maintain restricted cash of $10.1 million under agreements with outside parties. Escrow accounts of $1.7 million were established in conjunction with certain business acquisitions, to be released upon meeting certain working capital and other post-closing requirements as of the one-year post-acquisition dates with a balance of $1.7 million at June 30, 2024. 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.

Assets Held for Sale

During the second quarter of 2024, subsidiaries of the Company within the TestEquity and Lawson Products segments committed to a plan to sell two of their properties. As of June 30, 2024, $3.6 million has been classified as Assets held for sale within the Condensed Consolidated Balance Sheets. This amount represents the current carrying value of the assets. No gain or loss has been recognized as the carrying amount is less than the anticipated fair value expected to be received upon sale. The sale is expected to be completed within the next twelve months.

Property, Plant and Equipment, net

Components of property, plant and equipment, net were as follows:
(in thousands)June 30, 2024December 31, 2023
Land$15,351 $16,916 
Buildings and improvements49,358 50,376 
Machinery and equipment51,032 48,844 
Capitalized software11,856 9,148 
Furniture and fixtures13,020 11,022 
Vehicles3,598 1,738 
Construction in progress(1)
3,415 6,025 
Total147,630 144,069 
Accumulated depreciation and amortization(38,921)(30,258)
Property, plant and equipment, net$108,709 $113,811 
(1)Construction in progress primarily relates to upgrades to certain of the Company’s information technology systems and distribution facilities that we expect to place in service in the next 12 months.
Depreciation expense for property, plant and equipment and amortization expense for capitalized software, which are included in Selling, general and administrative expenses in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), were as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Depreciation expense for property, plant and equipment$3,771 $2,465 $7,500 $6,014 
Amortization expense for capitalized software$863 $818 $1,668 $1,539 

Rental Equipment, net

Rental equipment, net consisted of the following:
(in thousands)June 30, 2024December 31, 2023
Rental equipment$48,629 $52,387 
Accumulated depreciation(25,567)(27,812)
Rental equipment, net$23,062 $24,575 

Depreciation expense for rental equipment, which is included in Cost of goods sold in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss), was as follows:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2024202320242023
Depreciation expense for rental equipment$1,695 $1,895 $3,465 $4,196 

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)June 30, 2024December 31, 2023
Accrued severance and acquisition related retention bonus$36,085 $21,128 
Accrued compensation20,414 25,371 
Accrued and withheld taxes, other than income taxes9,703 8,661 
Accrued interest8,375 3,301 
Accrued customer rebates5,041 5,473 
Accrued stock-based compensation4,324 5,573 
Accrued health benefits1,963 1,728 
Accrued income taxes1,750 1,994 
Deferred acquisition payments and accrued earnout liabilities1,679 7,513 
Deferred revenue987 810 
Other17,795 15,689 
Total accrued expenses and other current liabilities$108,116 $97,241 
Other Liabilities

Other liabilities consisted of the following:
(in thousands)June 30, 2024December 31, 2023
Security bonus plan$7,938 $8,666 
Deferred compensation11,198 11,041 
Other6,660 5,736 
Total other liabilities$25,796 $25,443