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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Cash Flows From Operating Activities:      
Net income (loss) $ 75 [1] $ 101 [2] $ (26)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:      
Depreciation and amortization 897 480 449
Amortization of deferred financing costs and original issue discounts 23 22 23
Gain on sales of rental equipment (125) (66) (41)
Loss (gain) on sales of non-rental equipment (2) (2) 0
Gain on sale of software subsidiary (8) 0 0
Stock compensation expense, net 32 12 8
RSC merger related costs 111 19 0
Restructuring charge 99 19 34
Loss on extinguishment of debt securities and ABL amendment 72 3 28
Loss on retirement of subordinated convertible debentures 0 2 0
(Decrease) increase in deferred taxes (16) 39 (58)
Changes in operating assets and liabilities:      
Increase in accounts receivable (86) (62) (38)
(Increase) decrease in inventory (2) (3) 5
(Increase) decrease in prepaid expenses and other assets (18) (15) 61
(Decrease) increase in accounts payable (223) 68 4
(Decrease) increase in accrued expenses and other liabilities (108) (5) 3
Net cash provided by operating activities 721 612 452
Cash Flows From Investing Activities:      
Purchases of rental equipment (1,272) (774) (346)
Purchases of non-rental equipment (97) (36) (28)
Proceeds from sales of rental equipment 399 208 144
Proceeds from sales of non-rental equipment 31 13 7
Purchases of other companies, net of cash acquired (1,175) (276) 0
Proceeds from sale of software subsidiary 10 0 0
Net cash used in investing activities (2,104) (865) (223)
Cash Flows From Financing Activities:      
Proceeds from debt 6,013 1,892 3,423
Payments of debt, including subordinated convertible debentures (4,370) (1,813) (3,606)
Payments of financing costs (75) (16) (18)
Proceeds from the exercise of common stock options 21 35 1
Common stock repurchased (131) (7) (1)
Cash paid in connection with the 4 percent Convertible Senior Notes and related hedge, net 0 (11) 0
Excess tax benefits from share-based payment arrangements, net (5) 0 (2)
Net cash provided by (used in) financing activities 1,453 80 (203)
Effect of foreign exchange rates 0 6 8
Net increase (decrease) in cash and cash equivalents 70 (167) 34
Cash and cash equivalents at beginning of year 36 203 169
Cash and cash equivalents at end of year 106 36 203
Supplemental disclosure of cash flow information:      
Cash paid for interest, including subordinated convertible debentures 371 203 229
Cash paid (received) for income taxes, net $ 40 $ 24 $ (49)
[1] During the fourth quarter of 2012, we recognized $13 of charges related to the RSC merger. Additionally, during the quarter, we recognized restructuring charges of $6, primarily reflecting branch closure charges associated with the RSC merger. During the quarter, we also recognized asset impairment charges of $2 which are primarily reflected in non-rental depreciation and amortization and principally relate to write-offs of leasehold improvements and other fixed assets. During the fourth quarter of 2012, we redeemed our 10 7/8 percent Senior Notes and all of our outstanding 1 7/8 percent Convertible Senior Subordinated Notes were converted. Upon redemption/conversion, we recognized a loss of $72 in interest expense, net. The loss represents the difference between the net carrying amount and the total purchase/conversion price of these securities. During the quarter, we also recognized a benefit of $6 in cost of equipment rentals, excluding depreciation related to our provision for self-insurance reserves. Additionally, operating income for the fourth quarter 2012 includes $8 of costs, in the aggregate, primarily related to the merger, which should have been recognized in the second and third quarters of 2012. There is no impact on 2012 full year operating income.
[2] During the fourth quarter of 2011, we recognized $19 of charges associated with the RSC acquisition. Additionally, during the quarter, we closed 18 branches and recognized restructuring charges of $14. During the quarter, we also recognized asset impairment charges of $3 which are primarily reflected in non-rental depreciation and amortization and principally relate to write-offs of leasehold improvements and other fixed assets in connection with our closed restructuring program. In the quarter, we also purchased an aggregate of $32 of QUIPS for $32. In connection with this transaction, we retired $32 principal amount of our subordinated convertible debentures and recognized a loss of $1 in interest expense-subordinated convertible debentures, net, inclusive of the write-off of capitalized debt issuance costs. Interest expense, net for the fourth quarter of 2011 also includes a loss of $3 reflecting write-offs of debt issuance costs associated with the amendment of our ABL facility discussed above. During the quarter, we also recognized a benefit of $8 in cost of equipment rentals, excluding depreciation related to our provision for self-insurance reserves.