Condensed Consolidating Financial Information of Guarantor Subsidiaries

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Consolidating Financial Information of Guarantor Subsidiaries

Condensed Consolidating Financial Information of Guarantor Subsidiaries

URNA is 100 percent owned by Holdings (“Parent”) and has outstanding (i) certain indebtedness that is guaranteed by Parent, (ii) certain indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle which holds receivable assets relating to the Company’s accounts receivable securitization (the “SPV”), all of URNA’s U.S. subsidiaries (the “guarantor subsidiaries”) and (iii) certain indebtedness that is guaranteed only by the guarantor subsidiaries (specifically, the 10 ¹/4 percent Senior Notes and the 8 ¹/4 percent Senior Notes). However, this indebtedness is not guaranteed by URNA’s foreign subsidiaries and the SPV (together, the “non-guarantor subsidiaries”). The guarantor subsidiaries are all 100 percent-owned and the guarantees are made on a joint and several basis. The guarantees are not full and unconditional because a guarantor subsidiary can be automatically released and relieved of its obligations under certain circumstances, including sale of the subsidiary guarantor, the sale of all or substantially all of the subsidiary guarantor's assets, the requirements for legal defeasance or covenant defeasance under the applicable indenture being met or designating the subsidiary guarantor as an unrestricted subsidiary for purposes of the applicable covenants. The guarantees are also subject to subordination provisions (to the same extent that the obligations of the issuer under the relevant notes are subordinated to other debt of the issuer) and to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws. Based on our understanding of Rule 3-10 of Regulation S-X ("Rule 3-10"), we believe that the guarantees of the guarantor subsidiaries comply with the conditions set forth in Rule 3-10 and therefore continue to utilize Rule 3-10 to present condensed consolidating financial information for Holdings, URNA, the guarantor subsidiaries and the non-guarantor subsidiaries. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented. Certain reclassifications of prior year's amounts have been made to conform to the current year’s presentation.

URNA covenants in the ABL facility, accounts receivable securitization facility and the other agreements governing our debt impose operating and financial restrictions on URNA, Parent and the guarantor subsidiaries, including limitations on the ability to pay dividends. As of March 31, 2014, the amount available for distribution under the most restrictive of these covenants was $448.

The condensed consolidating financial information of Parent and its subsidiaries is as follows:

CONDENSED CONSOLIDATING BALANCE SHEET

March 31, 2014

	Parent		URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
									Foreign			SPV
ASSETS
Cash and cash equivalents	$	—	$	23		$	—		$	204		$	—	$	—		$	227
Accounts receivable, net	—		37			—			126			589		—			752
Intercompany receivable (payable)	261		(199		)	(55		)	(135		)	—		128			—
Inventory	—		92			—			10			—		—			102
Prepaid expenses and other assets	—		48			2			9			—		—			59
Deferred taxes	—		258			—			2			—		—			260
Total current assets	261		259			(53		)	216			589		128			1,400
Rental equipment, net	—		4,838			—			568			—		—			5,406
Property and equipment, net	46		302			20			40			—		—			408
Investments in subsidiaries	1,629		1,372			984			—			—		(3,985		)	—
Goodwill, net	—		2,708			—			236			—		—			2,944
Other intangible assets, net	—		892			—			80			—		—			972
Other long-term assets	1		116			—			—			—		—			117
Total assets	$	1,937	$	10,487		$	951		$	1,140		$	589	$	(3,857	)	$	11,247
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt	$	89	$	36		$	—		$	—		$	140	$	—		$	265
Accounts payable	—		413			—			41			—		—			454
Accrued expenses and other liabilities	2		329			21			30			—		—			382
Total current liabilities	91		778			21			71			140		—			1,101
Long-term debt	—		6,632			135			7			—		—			6,774
Deferred taxes	22		1,381			—			78			—		—			1,481
Other long-term liabilities	—		67			—			—			—		—			67
Total liabilities	113		8,858			156			156			140		—			9,423
Temporary equity (note 6)	11		—			—			—			—		—			11
Total stockholders’ equity (deficit)	1,813		1,629			795			984			449		(3,857		)	1,813
Total liabilities and stockholders’ equity (deficit)	$	1,937	$	10,487		$	951		$	1,140		$	589	$	(3,857	)	$	11,247

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2013

	Parent		URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
									Foreign			SPV
ASSETS
Cash and cash equivalents	$	—	$	17		$	—		$	158		$	—	$	—		$	175
Accounts receivable, net	—		36			—			140			628		—			804
Intercompany receivable (payable)	308		(257		)	(51		)	(132		)	—		132			—
Inventory	—		62			—			8			—		—			70
Prepaid expenses and other assets	—		42			1			10			—		—			53
Deferred taxes	—		258			—			2			—		—			260
Total current assets	308		158			(50		)	186			628		132			1,362
Rental equipment, net	—		4,768			—			606			—		—			5,374
Property and equipment, net	48		313			20			40			—		—			421
Investments in subsidiaries	1,648		1,132			997			—			—		(3,777		)	—
Goodwill, net	—		2,708			—			245			—		—			2,953
Other intangible assets, net	—		931			—			87			—		—			1,018
Other long-term assets	2		100			—			—			1		—			103
Total assets	$	2,006	$	10,110		$	967		$	1,164		$	629	$	(3,645	)	$	11,231
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt	$	136	$	38		$	—		$	—		$	430	$	—		$	604
Accounts payable	—		254			—			38			—		—			292
Accrued expenses and other liabilities	1		327			25			36			1		—			390
Total current liabilities	137		619			25			74			431		—			1,286
Long-term debt	—		6,421			140			8			—		—			6,569
Deferred taxes	21		1,357			—			81			—		—			1,459
Other long-term liabilities	—		65			—			4			—		—			69
Total liabilities	158		8,462			165			167			431		—			9,383
Temporary equity (note 6)	20		—			—			—			—		—			20
Total stockholders’ equity (deficit)	1,828		1,648			802			997			198		(3,645		)	1,828
Total liabilities and stockholders’ equity (deficit)	$	2,006	$	10,110		$	967		$	1,164		$	629	$	(3,645	)	$	11,231

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2014

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	872		$	—		$	133		$	—		$	—		$	1,005
Sales of rental equipment	—			100			—			10			—			—			110
Sales of new equipment	—			21			—			5			—			—			26
Contractor supplies sales	—			15			—			4			—			—			19
Service and other revenues	—			15			—			3			—			—			18
Total revenues	—			1,023			—			155			—			—			1,178
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			354			—			55			—			—			409
Depreciation of rental equipment	—			193			—			24			—			—			217
Cost of rental equipment sales	—			60			—			5			—			—			65
Cost of new equipment sales	—			16			—			4			—			—			20
Cost of contractor supplies sales	—			10			—			3			—			—			13
Cost of service and other revenues	—			5			—			1			—			—			6
Total cost of revenues	—			638			—			92			—			—			730
Gross profit	—			385			—			63			—			—			448
Selling, general and administrative expenses	25			123			—			20			—			—			168
Merger related costs	—			1			—			—			—			—			1
Restructuring charge	—			1			—			—			—			—			1
Non-rental depreciation and amortization	4			51			—			5			—			—			60
Operating (loss) income	(29		)	209			—			38			—			—			218
Interest expense (income), net	6			118			1			1			1			(2		)	125
Other (income) expense, net	(32		)	46			2			3			(20		)	—			(1		)
(Loss) income before provision for income taxes	(3		)	45			(3		)	34			19			2			94
Provision for income taxes	—			18			—			9			7			—			34
(Loss) income before equity in net earnings (loss) of subsidiaries	(3		)	27			(3		)	25			12			2			60
Equity in net earnings (loss) of subsidiaries	63			36			25			—			—			(124		)	—
Net income (loss)	60			63			22			25			12			(122		)	60
Other comprehensive (loss) income	(39		)	(39		)	(38		)	(30		)	—			107			(39		)
Comprehensive income (loss)	$	21		$	24		$	(16	)	$	(5	)	$	12		$	(15	)	$	21

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended March 31, 2013

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	781		$	—		$	135		$	—		$	—		$	916
Sales of rental equipment	—			112			—			11			—			—			123
Sales of new equipment	—			16			—			5			—			—			21
Contractor supplies sales	—			16			—			4			—			—			20
Service and other revenues	—			15			—			5			—			—			20
Total revenues	—			940			—			160			—			—			1,100
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			333			—			60			—			—			393
Depreciation of rental equipment	—			178			—			24			—			—			202
Cost of rental equipment sales	—			76			—			7			—			—			83
Cost of new equipment sales	—			13			—			4			—			—			17
Cost of contractor supplies sales	—			10			—			3			—			—			13
Cost of service and other revenues	—			6			—			1			—			—			7
Total cost of revenues	—			616			—			99			—			—			715
Gross profit	—			324			—			61			—			—			385
Selling, general and administrative expenses	19			117			—			22			2			—			160
Merger related costs	—			6			—			—			—			—			6
Restructuring charge	—			6			—			—			—			—			6
Non-rental depreciation and amortization	4			55			—			5			—			—			64
Operating (loss) income	(23		)	140			—			34			(2		)	—			149
Interest expense (income), net	2			114			1			1			1			(1		)	118
Interest expense-subordinated convertible debentures	2			—			—			—			—			—			2
Other (income) expense, net	(30		)	45			—			3			(19		)	—			(1		)
Income (loss) before provision (benefit) for income taxes	3			(19		)	(1		)	30			16			1			30
Provision (benefit) for income taxes	1			(7		)	—			9			6			—			9
Income (loss) before equity in net earnings (loss) of subsidiaries	2			(12		)	(1		)	21			10			1			21
Equity in net earnings (loss) of subsidiaries	19			31			21			—			—			(71		)	—
Net income (loss)	21			19			20			21			10			(70		)	21
Other comprehensive (loss) income	(20		)	(20		)	(20		)	(15		)	—			55			(20		)
Comprehensive income (loss)	$	1		$	(1	)	$	—		$	6		$	10		$	(15	)	$	1

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Three Months EndedMarch 31, 2014

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
										Foreign			SPV
Net cash provided by operating activities	$	3		$	390		$	1		$	62		$	52		$	—	$	508
Net cash used in investing activities	(3		)	(219		)	—			(9		)	—			—		(231		)
Net cash used in financing activities	—			(165		)	(1		)	—			(52		)	—		(218		)
Effect of foreign exchange rates	—			—			—			(7		)	—			—		(7		)
Net increase in cash and cash equivalents	—			6			—			46			—			—		52
Cash and cash equivalents at beginning of period	—			17			—			158			—			—		175
Cash and cash equivalents at end of period	$	—		$	23		$	—		$	204		$	—		$	—	$	227

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Three Months EndedMarch 31, 2013

	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
										Foreign			SPV
Net cash provided by (used in) operating activities	$	16		$	295		$	(1	)	$	50		$	49		$	—	$	409
Net cash used in investing activities	(16		)	(148		)	—			(11		)	—			—		(175		)
Net cash (used in) provided by financing activities	—			(143		)	1			—			(49		)	—		(191		)
Effect of foreign exchange rates	—			—			—			(2		)	—			—		(2		)
Net increase in cash and cash equivalents	—			4			—			37			—			—		41
Cash and cash equivalents at beginning of period	—			20			—			86			—			—		106
Cash and cash equivalents at end of period	$	—		$	24		$	—		$	123		$	—		$	—	$	147