Segment Information

9 Months Ended

Sep. 30, 2013

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 construction, infrastructure, industrial and homeowner equipment and related services and activities. The general rentals segment’s customers include construction and industrial companies, manufacturers, utilities, municipalities, homeowners and government entities. The general rentals segment comprises 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, Pacific West, South, Southeast and Western Canada—and operates throughout the United States and Canada. The trench safety, power and HVAC segment includes the rental of specialty construction products and related services. The trench safety, power and HVAC segment is comprised of the Trench Safety region, which rents trench safety equipment such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, and the Power and HVAC region, which rents power and HVAC equipment such as portable diesel generators, electrical distribution equipment, and temperature control equipment including heating and cooling equipment. 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 and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit.

The following tables set forth financial information by segment.

	General rentals		Trench safety, power and  HVAC		Total
Three Months Ended September 30, 2013
Equipment rentals	$	1,038	$	100	$	1,138
Sales of rental equipment	98		4		102
Sales of new equipment	27		2		29
Contractor supplies sales	21		2		23
Service and other revenues	18		1		19
Total revenue	1,202		109		1,311
Depreciation and amortization expense	261		17		278
Equipment rentals gross profit	445		52		497
Three Months Ended September 30, 2012
Equipment rentals	$	971	$	80	$	1,051
Sales of rental equipment	98		3		101
Sales of new equipment	22		2		24
Contractor supplies sales	21		2		23
Service and other revenues	19		1		20
Total revenue	1,131		88		1,219
Depreciation and amortization expense	264		11		275
Equipment rentals gross profit	410		42		452
Nine Months Ended September 30, 2013
Equipment rentals	$	2,824	$	239	$	3,063
Sales of rental equipment	343		13		356
Sales of new equipment	69		5		74
Contractor supplies sales	60		6		66
Service and other revenues	54		4		58
Total revenue	3,350		267		3,617
Depreciation and amortization expense	771		43		814
Equipment rentals gross profit	1,106		114		1,220
Capital expenditures	1,461		109		1,570
Nine Months Ended September 30, 2012
Equipment rentals	$	2,227	$	192	$	2,419
Sales of rental equipment	250		8		258
Sales of new equipment	59		5		64
Contractor supplies sales	58		6		64
Service and other revenues	60		3		63
Total revenue	2,654		214		2,868
Depreciation and amortization expense	592		33		625
Equipment rentals gross profit	847		90		937
Capital expenditures	1,112		73		1,185

	September 30, 2013		December 31, 2012
Total reportable segment assets
General rentals	$	11,004	$	10,545
Trench safety, power and HVAC	559		481
Total assets	$	11,563	$	11,026

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 before provision for income taxes:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2013			2012			2013			2012
Total equipment rentals gross profit	$	497		$	452		$	1,220		$	937
Gross profit from other lines of business	67			53			200			155
Selling, general and administrative expenses	(167		)	(164		)	(479		)	(412		)
RSC merger related costs	—			(8		)	(8		)	(98		)
Restructuring charge	(1		)	(40		)	(12		)	(93		)
Non-rental depreciation and amortization	(59		)	(71		)	(185		)	(134		)
Interest expense, net	(121		)	(127		)	(357		)	(316		)
Interest expense- subordinated convertible debentures	—			(1		)	(3		)	(3		)
Other income, net	2			—			3			13
Income before provision for income taxes	$	218		$	94		$	379		$	49