Segment Information

12 Months Ended

Dec. 31, 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 the following equipment:

• General construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment. In 2013, 2012 and 2011, respectively, general construction and industrial equipment accounted for approximately 44 percent, 45 percent and 41 percent of our equipment rental revenue;

• Aerial work platforms,such as boom lifts and scissor lifts. In 2013, 2012 and 2011, respectively, aerial work platforms accounted for approximately 36 percent, 36 percent and 39 percent of our equipment rental revenue; and

• General tools and light equipment, such as pressure washers, water pumps and power tools. In 2013, 2012 and 2011, respectively, general tools and light equipment accounted for approximately 9 percent, 9 percent and 8 percent of our equipment rental revenue.

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, 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 such as the following:

• Power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment. In 2013, 2012 and 2011, power and HVAC equipment accounted for approximately 6 percent of our equipment rental revenue; 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. In 2013, 2012 and 2011, respectively, trench safety equipment accounted for approximately 5 percent, 4 percent and 6 percent of our equipment rental revenue.

The trench safety, power and HVAC segment is comprised of the Trench Safety region, which rents the trench safety equipment above, and the Power and HVAC region, which rents the power and HVAC equipment above. 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 primarily on rental fleet size.

The following table sets forth financial information by segment for the years ended December 31, 2013, 2012 and 2011, except for balance sheet information, which is presented as of December 31, 2013 and 2012.

	General rentals		Trench safety, power and HVAC		Total
2013
Equipment rentals	$	3,869	$	327	$	4,196
Sales of rental equipment	474		16		490
Sales of new equipment	97		7		104
Contractor supplies sales	79		8		87
Service and other revenues	72		6		78
Total revenue	4,591		364		4,955
Depreciation and amortization expense	1,038		60		1,098
Equipment rentals gross profit	1,557		153		1,710
Capital expenditures	1,556		128		1,684
Total assets	$	10,677	$	554	$	11,231
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

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:

	Year Ended December 31,
	2013			2012			2011
Total equipment rentals gross profit	$	1,710		$	1,364		$	736
Gross profit from other lines of business	277			223			162
Selling, general and administrative expenses	(642		)	(588		)	(407		)
RSC merger related costs	(9		)	(111		)	(19		)
Restructuring charge	(12		)	(99		)	(19		)
Non-rental depreciation and amortization	(246		)	(198		)	(57		)
Interest expense, net	(475		)	(512		)	(228		)
Interest expense- subordinated convertible debentures	(3		)	(4		)	(7		)
Other income, net	5			13			3
Income before provision for income taxes	$	605		$	88		$	164

We operate in the United States and Canada. The following table presents geographic area information for the years ended December 31, 2013, 2012 and 2011, except for balance sheet information, which is presented as of December 31, 2013 and 2012. All the foreign assets as of December 31, 2013 and 2012 are Canadian, and the foreign information in the following table primarily relates to Canada.

	Domestic		Foreign		Total
2013
Equipment rentals	$	3,612	$	584	$	4,196
Sales of rental equipment	438		52		490
Sales of new equipment	82		22		104
Contractor supplies sales	70		17		87
Service and other revenues	62		16		78
Total revenue	4,264		691		4,955
Rental equipment, net	4,768		606		5,374
Property and equipment, net	381		40		421
Goodwill and other intangibles, net	$	3,639	$	332	$	3,971
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