Organization, Description Of Business And Consolidation

12 Months Ended

Dec. 31, 2011

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Description of Business and Consolidation

Organization, Description of Business and Consolidation

United Rentals, Inc. ("Holdings") is principally a holding company and conducts its operations primarily through its wholly owned subsidiary, United Rentals (North America), Inc. (“URNA”), and subsidiaries of URNA. Holdings’ primary asset is its sole ownership of all issued and outstanding shares of common stock of URNA. URNA’s various credit agreements and debt instruments place restrictions on its ability to transfer funds to its stockholder. As used in this report, the terms the “Company,” “United Rentals,” “we,” “us,” and “our” refer to United Rentals, Inc. and its subsidiaries, unless otherwise indicated.

We rent equipment to a diverse customer base that includes construction and industrial companies, manufacturers, utilities, municipalities, homeowners and others in the United States and Canada. In addition to renting equipment, we sell new and used rental equipment, as well as related contractor supplies, parts and service.

During the year ended December 31, 2011, we completed the acquisitions of Venetor Group (“Venetor”), a seven location equipment rental company in Canada located in the province of Ontario, GulfStar Rental Solutions, LP (“GulfStar”), a three location power and HVAC (“heating, ventilating and air conditioning”) equipment rental company located in Texas and Louisiana, Ontario Laser Rentals Ltd. (“Ontario Laser”), a two location trench safety equipment rental company in Canada located in the province of Ontario, and Blue Mountain Equipment Rental Corporation (“Blue Mountain”), a company primarily focused on the industrial segment with three locations in Pennsylvania and West Virginia. Venetor, GulfStar, Ontario Laser and Blue Mountain had annual revenues of approximately $50, $15, $20 and $40, respectively. Our cash flows for the year ended December 31, 2011 reflect an aggregate of $276 paid to purchase these companies. The purchase price allocations for these acquisitions are based on preliminary valuations and are subject to change as we obtain additional information during each acquisition’s measurement period.

In addition, on December 15, 2011, we entered into a definitive merger agreement with RSC Holdings, Inc. (“RSC”), pursuant to which we have agreed to acquire RSC in a cash-and-stock transaction that ascribes a total enterprise value of $4.2 billion to RSC. Total cash consideration paid to holders of RSC common stock is expected to be approximately $1.1 billion and we anticipate issuing approximately 29 million shares of common stock in the merger. The cash portion of the merger will be financed through new debt issuances and drawing on current loan facilities. In connection with the proposed transaction, we intend to re-pay the outstanding amounts on RSC's existing senior secured credit facilities and senior secured notes due 2017, which totaled $854as of September 30, 2011, and assume all of RSC's remaining $1.4 billion of unsecured debt after such repayment. The proposed merger is subject to approval by our stockholders and RSC stockholders, regulatory approvals and other mutual conditions of the parties. We expect the merger to close in the first half of 2012.

The accompanying consolidated financial statements include our accounts and those of our controlled subsidiary companies. All significant intercompany accounts and transactions have been eliminated. We consolidate variable interest entities if we are deemed the primary beneficiary of the entity.