Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

Our reportable segments are general rentals and trench safety, power and HVAC (“heating, ventilating and air conditioning”). The general rentals segment includes the rental of the following equipment:

• General construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, which accounted for approximately 45 percent, 41 percent and 41 percent of 2012, 2011 and 2010 equipment rental revenue, respectively;

• Aerial work platforms,such as boom lifts and scissor lifts, which accounted for approximately 36 percent, 39 percent and 40 percent of 2012, 2011 and 2010 equipment rental revenue, respectively; and

• General tools and light equipment, such as pressure washers, water pumps and power tools, which accounted for approximately 9 percent, 8 percent and 9 percent of 2012, 2011 and 2010 equipment rental revenue, respectively.

The general rentals segment reflects the aggregation of 12 geographic regions—Eastern Canada, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid-Central, Midwest, Mountain West, Northeast, Northwest, South, Southeast and Southwest—and operates throughout the United States and Canada.

The trench safety, power and HVAC segment includes the rental of specialty construction products such as the following:

• Power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment including heating and cooling equipment, which accounted for approximately 6 percent, 6 percent and 5 percent of 2012, 2011 and 2010 equipment rental revenue, respectively; and

• Trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, which accounted for approximately 4 percent, 6 percent and 5 percent of 2012, 2011 and 2010 equipment rental revenue, respectively.

The trench safety, power and HVAC segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada.

These segments align our external segment reporting with how management evaluates business performance and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit.

The accounting policies for our segments are the same as those described in the summary of significant accounting policies in note 2. Certain corporate costs, including those related to selling, finance, legal, risk management, human resources, corporate management and information technology systems, are deemed to be of an operating nature and are allocated to our segments based on either the actual amount of costs incurred in the prior year for selling, general and administrative expenses or equipment rental revenue generating activities.

The following table sets forth financial information by segment for the years ended December 31, 2012, 2011 and 2010, except for balance sheet information, which is presented as of December 31, 2012 and 2011.

	General rentals		Trench safety, power and HVAC		Total
2012
Equipment rentals	$	3,188	$	267	$	3,455
Sales of rental equipment	387		12		399
Sales of new equipment	86		7		93
Contractor supplies sales	80		7		87
Service and other revenues	79		4		83
Total revenue	3,820		297		4,117
Depreciation and amortization expense	850		47		897
Equipment rentals gross profit	1,239		125		1,364
Capital expenditures	1,285		84		1,369
Total assets	$	10,545	$	481	$	11,026
2011
Equipment rentals	$	1,953	$	198	$	2,151
Sales of rental equipment	201		7		208
Sales of new equipment	77		7		84
Contractor supplies sales	79		6		85
Service and other revenues	79		4		83
Total revenue	2,389		222		2,611
Depreciation and amortization expense	448		32		480
Equipment rentals gross profit	643		93		736
Capital expenditures	739		71		810
Total assets	$	3,776	$	367	$	4,143
2010
Equipment rentals	$	1,693	$	141	$	1,834
Sales of rental equipment	134		10		144
Sales of new equipment	72		6		78
Contractor supplies sales	89		6		95
Service and other revenues	83		3		86
Total revenue	2,071		166		2,237
Depreciation and amortization expense	426		23		449
Equipment rentals gross profit	461		60		521
Capital expenditures	$	344	$	30	$	374

Equipment rentals gross profit is the primary measure management reviews to make operating decisions and assess segment performance. The following is a reconciliation of equipment rentals gross profit to income (loss) from continuing operations before provision (benefit) for income taxes:

	Year Ended December 31,
	2012			2011			2010
Total equipment rentals gross profit	$	1,364		$	736		$	521
Gross profit from other lines of business	223			162			137
Selling, general and administrative expenses	(588		)	(407		)	(367		)
RSC merger related costs	(111		)	(19		)	—
Restructuring charge	(99		)	(19		)	(34		)
Non-rental depreciation and amortization	(198		)	(57		)	(60		)
Interest expense, net	(512		)	(228		)	(255		)
Interest expense- subordinated convertible debentures, net	(4		)	(7		)	(8		)
Other income, net	13			3			3
Income (loss) from continuing operations before provision (benefit) for income taxes	$	88		$	164		$	(63	)

We operate in the United States and Canada. The following table presents geographic area information for the years ended December 31, 2012, 2011 and 2010, except for balance sheet information, which is presented as of December 31, 2012 and 2011. All the foreign assets as of December 31, 2012 and 2011 are Canadian, and the foreign information in the following table primarily relates to Canada.

	Domestic		Foreign		Total
2012
Equipment rentals	$	2,948	$	507	$	3,455
Sales of rental equipment	350		49		399
Sales of new equipment	67		26		93
Contractor supplies sales	67		20		87
Service and other revenues	66		17		83
Total revenue	3,498		619		4,117
Rental equipment, net	4,357		609		4,966
Property and equipment, net	390		38		428
Goodwill and other intangibles, net	$	3,804	$	366	$	4,170
2011
Equipment rentals	$	1,779	$	372	$	2,151
Sales of rental equipment	180		28		208
Sales of new equipment	59		25		84
Contractor supplies sales	62		23		85
Service and other revenues	64		19		83
Total revenue	2,144		467		2,611
Rental equipment, net	2,181		436		2,617
Property and equipment, net	338		28		366
Goodwill and other intangibles, net	$	232	$	140	$	372
2010
Equipment rentals	$	1,569	$	265	$	1,834
Sales of rental equipment	121		23		144
Sales of new equipment	59		19		78
Contractor supplies sales	71		24		95
Service and other revenues	68		18		86
Total revenue	$	1,888	$	349	$	2,237