Segment Information

6 Months Ended

Jun. 30, 2014

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

Our reportable segments are general rentals and trench safety, power and HVAC, and pump solutions. 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, and pump solutions segment includes the rental of specialty construction products and related services. The trench safety, power and HVAC, and pump solutions 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, 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, and the Pump Solutions region, which rents pumps primarily used by energy and petrochemical customers. The trench safety, power and HVAC, and pump solutions 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, and pump solutions		Total
Three Months Ended June 30, 2014
Equipment rentals	$	1,028	$	151	$	1,179
Sales of rental equipment	132		6		138
Sales of new equipment	25		12		37
Contractor supplies sales	19		3		22
Service and other revenues	17		6		23
Total revenue	1,221		178		1,399
Depreciation and amortization expense	263		36		299
Equipment rentals gross profit	426		77		503
Three Months Ended June 30, 2013
Equipment rentals	$	932	$	77	$	1,009
Sales of rental equipment	126		5		131
Sales of new equipment	22		2		24
Contractor supplies sales	21		2		23
Service and other revenues	17		2		19
Total revenue	1,118		88		1,206
Depreciation and amortization expense	258		12		270
Equipment rentals gross profit	366		36		402
Six Months Ended June 30, 2014
Equipment rentals	$	1,952	$	232	$	2,184
Sales of rental equipment	238		10		248
Sales of new equipment	49		14		63
Contractor supplies sales	36		5		41
Service and other revenues	34		7		41
Total revenue	2,309		268		2,577
Depreciation and amortization expense	522		54		576
Equipment rentals gross profit	770		112		882
Capital expenditures	981		99		1,080
Six Months Ended June 30, 2013
Equipment rentals	$	1,786	$	139	$	1,925
Sales of rental equipment	245		9		254
Sales of new equipment	42		3		45
Contractor supplies sales	39		4		43
Service and other revenues	36		3		39
Total revenue	2,148		158		2,306
Depreciation and amortization expense	510		26		536
Equipment rentals gross profit	661		62		723
Capital expenditures	1,003		63		1,066

	June 30, 2014		December 31, 2013
Total reportable segment assets
General rentals	$	10,979	$	10,677
Trench safety, power and HVAC, and pump solutions (1)	1,488		554
Total assets	$	12,467	$	11,231

(1) The increase in the trench safety, power and HVAC, and pump solutions assets primarily reflects the impact of the National Pump acquisition discussed in note 2 to the condensed consolidated financial statements.

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						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Total equipment rentals gross profit	$	503		$	402		$	882		$	723
Gross profit from other lines of business	86			69			155			133
Selling, general and administrative expenses	(187		)	(152		)	(355		)	(312		)
Merger related costs	(8		)	(2		)	(9		)	(8		)
Restructuring charge	1			(5		)	—			(11		)
Non-rental depreciation and amortization	(70		)	(62		)	(130		)	(126		)
Interest expense, net	(187		)	(118		)	(312		)	(236		)
Interest expense- subordinated convertible debentures	—			(1		)	—			(3		)
Other income, net	4			—			5			1
Income before provision for income taxes	$	142		$	131		$	236		$	161