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 10¹/4 percent Senior Notes and the 8¹/4 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 June 30, 2014, the amount available for distribution under the most restrictive of these covenants was $421.

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

CONDENSED CONSOLIDATING BALANCE SHEET

June 30, 2014



	Parent		URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
	Parent		URNA			Guarantor Subsidiaries			Foreign			SPV		Eliminations			Total
ASSETS
Cash and cash equivalents	$	—	$	26		$	—		$	144		$	—	$	—		$	170
Accounts receivable, net	—		31			—			127			686		—			844
Intercompany receivable (payable)	329		(264		)	(57		)	(143		)	—		135			—
Inventory	—		104			—			15			—		—			119
Prepaid expenses and other assets	—		56			2			13			—		—			71
Deferred taxes	—		190			—			2			—		—			192
Total current assets	329		143			(55		)	158			686		135			1,396
Rental equipment, net	—		5,384			—			645			—		—			6,029
Property and equipment, net	48		310			21			44			—		—			423
Investments in subsidiaries	1,539		1,167			1,036			—			—		(3,742		)	—
Goodwill, net	—		3,000			—			293			—		—			3,293
Other intangible assets, net	—		1,104			—			114			—		—			1,218
Other long-term assets	1		107			—			—			—		—			108
Total assets	$	1,917	$	11,215		$	1,002		$	1,254		$	686	$	(3,607	)	$	12,467
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt	$	87	$	38		$	—		$	—		$	496	$	—		$	621
Accounts payable	—		547			—			78			—		—			625
Accrued expenses and other liabilities	1		433			20			46			—		—			500
Total current liabilities	88		1,018			20			124			496		—			1,746
Long-term debt	—		7,246			140			8			—		—			7,394
Deferred taxes	22		1,334			—			84			—		—			1,440
Other long-term liabilities	—		78			—			2			—		—			80
Total liabilities	110		9,676			160			218			496		—			10,660
Temporary equity (note 8)	10		—			—			—			—		—			10
Total stockholders’ equity (deficit)	1,797		1,539			842			1,036			190		(3,607		)	1,797
Total liabilities and stockholders’ equity (deficit)	$	1,917	$	11,215		$	1,002		$	1,254		$	686	$	(3,607	)	$	12,467

CONDENSED CONSOLIDATING BALANCE SHEET

December 31, 2013



	Parent		URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
	Parent		URNA			Guarantor Subsidiaries			Foreign			SPV		Eliminations			Total
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 8)	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 June 30, 2014





	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
										Foreign		SPV
Revenues:
Equipment rentals	$	—		$	1,042		$	—		$	137	$	—		$	—		$	1,179
Sales of rental equipment	—			122			—			16		—			—			138
Sales of new equipment	—			31			—			6		—			—			37
Contractor supplies sales	—			19			—			3		—			—			22
Service and other revenues	—			17			—			6		—			—			23
Total revenues	—			1,231			—			168		—			—			1,399
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			383			—			64		—			—			447
Depreciation of rental equipment	—			203			—			26		—			—			229
Cost of rental equipment sales	—			70			—			10		—			—			80
Cost of new equipment sales	—			27			—			4		—			—			31
Cost of contractor supplies sales	—			13			—			2		—			—			15
Cost of service and other revenues	—			5			—			3		—			—			8
Total cost of revenues	—			701			—			109		—			—			810
Gross profit	—			530			—			59		—			—			589
Selling, general and administrative expenses	(6		)	171			2			23		(3		)	—			187
Merger related costs	—			8			—			—		—			—			8
Restructuring charge	—			(1		)	—			—		—			—			(1		)
Non-rental depreciation and amortization	5			58			—			7		—			—			70
Operating income (loss)	1			294			(2		)	29		3			—			325
Interest expense (income), net	1			182			2			2		1			(1		)	187
Other (income) expense, net	(37		)	52			(3		)	4		(20		)	—			(4		)
Income (loss) before provision for income taxes	37			60			(1		)	23		22			1			142
Provision for income taxes	1			32			—			6		9			—			48
Income (loss) before equity in net earnings (loss) of subsidiaries	36			28			(1		)	17		13			1			94
Equity in net earnings (loss) of subsidiaries	58			30			17			—		—			(105		)	—
Net income (loss)	94			58			16			17		13			(104		)	94
Other comprehensive income (loss)	36			36			36			28		—			(100		)	36
Comprehensive income (loss)	$	130		$	94		$	52		$	45	$	13		$	(204	)	$	130

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended June 30, 2013




	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	870		$	—		$	139		$	—		$	—		$	1,009
Sales of rental equipment	—			116			—			15			—			—			131
Sales of new equipment	—			18			—			6			—			—			24
Contractor supplies sales	—			18			—			5			—			—			23
Service and other revenues	—			16			—			3			—			—			19
Total revenues	—			1,038			—			168			—			—			1,206
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			336			—			63			—			—			399
Depreciation of rental equipment	—			184			—			24			—			—			208
Cost of rental equipment sales	—			78			—			9			—			—			87
Cost of new equipment sales	—			14			—			5			—			—			19
Cost of contractor supplies sales	—			13			—			3			—			—			16
Cost of service and other revenues	—			4			—			2			—			—			6
Total cost of revenues	—			629			—			106			—			—			735
Gross profit	—			409			—			62			—			—			471
Selling, general and administrative expenses	(10		)	142			—			23			(3		)	—			152
Merger related costs	—			2			—			—			—			—			2
Restructuring charge	—			5			—			—			—			—			5
Non-rental depreciation and amortization	4			53			—			5			—			—			62
Operating income (loss)	6			207			—			34			3			—			250
Interest expense (income), net	4			112			2			—			1			(1		)	118
Interest expense-subordinated convertible debentures	1			—			—			—			—			—			1
Other (income) expense, net	(35		)	48			—			6			(19		)	—			—
Income (loss) before provision for income taxes	36			47			(2		)	28			21			1			131
Provision for income taxes	8			24			—			7			9			—			48
Income (loss) before equity in net earnings (loss) of subsidiaries	28			23			(2		)	21			12			1			83
Equity in net earnings (loss) of subsidiaries	55			32			21			—			—			(108		)	—
Net income (loss)	83			55			19			21			12			(107		)	83
Other comprehensive (loss) income	(32		)	(32		)	(32		)	(25		)	—			89			(32		)
Comprehensive income (loss)	$	51		$	23		$	(13	)	$	(4	)	$	12		$	(18	)	$	51

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Six Months Ended June 30, 2014




	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	1,914		$	—		$	270		$	—		$	—		$	2,184
Sales of rental equipment	—			222			—			26			—			—			248
Sales of new equipment	—			52			—			11			—			—			63
Contractor supplies sales	—			34			—			7			—			—			41
Service and other revenues	—			32			—			9			—			—			41
Total revenues	—			2,254			—			323			—			—			2,577
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			737			—			119			—			—			856
Depreciation of rental equipment	—			396			—			50			—			—			446
Cost of rental equipment sales	—			130			—			15			—			—			145
Cost of new equipment sales	—			43			—			8			—			—			51
Cost of contractor supplies sales	—			23			—			5			—			—			28
Cost of service and other revenues	—			10			—			4			—			—			14
Total cost of revenues	—			1,339			—			201			—			—			1,540
Gross profit	—			915			—			122			—			—			1,037
Selling, general and administrative expenses	19			294			2			43			(3		)	—			355
Merger related costs	—			9			—			—			—			—			9
Restructuring charge	—			—			—			—			—			—			—
Non-rental depreciation and amortization	9			109			—			12			—			—			130
Operating (loss) income	(28		)	503			(2		)	67			3			—			543
Interest expense (income), net	7			300			3			3			2			(3		)	312
Other (income) expense, net	(69		)	98			(1		)	7			(40		)	—			(5		)
Income (loss) before provision for income taxes	34			105			(4		)	57			41			3			236
Provision for income taxes	1			50			—			15			16			—			82
Income (loss) before equity in net earnings (loss) of subsidiaries	33			55			(4		)	42			25			3			154
Equity in net earnings (loss) of subsidiaries	121			66			42			—			—			(229		)	—
Net income (loss)	154			121			38			42			25			(226		)	154
Other comprehensive (loss) income	(3		)	(3		)	(2		)	(2		)	—			7			(3		)
Comprehensive income (loss)	$	151		$	118		$	36		$	40		$	25		$	(219	)	$	151

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Six Months Ended June 30, 2013




	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	1,651		$	—		$	274		$	—		$	—		$	1,925
Sales of rental equipment	—			228			—			26			—			—			254
Sales of new equipment	—			34			—			11			—			—			45
Contractor supplies sales	—			34			—			9			—			—			43
Service and other revenues	—			31			—			8			—			—			39
Total revenues	—			1,978			—			328			—			—			2,306
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			669			—			123			—			—			792
Depreciation of rental equipment	—			362			—			48			—			—			410
Cost of rental equipment sales	—			154			—			16			—			—			170
Cost of new equipment sales	—			27			—			9			—			—			36
Cost of contractor supplies sales	—			23			—			6			—			—			29
Cost of service and other revenues	—			10			—			3			—			—			13
Total cost of revenues	—			1,245			—			205			—			—			1,450
Gross profit	—			733			—			123			—			—			856
Selling, general and administrative expenses	9			259			—			45			(1		)	—			312
Merger related costs	—			8			—			—			—			—			8
Restructuring charge	—			11			—			—			—			—			11
Non-rental depreciation and amortization	8			108			—			10			—			—			126
Operating (loss) income	(17		)	347			—			68			1			—			399
Interest expense (income), net	6			226			3			1			2			(2		)	236
Interest expense-subordinated convertible debentures	3			—			—			—			—			—			3
Other (income) expense, net	(65		)	93			—			9			(38		)	—			(1		)
Income (loss) before provision for income taxes	39			28			(3		)	58			37			2			161
Provision for income taxes	9			17			—			16			15			—			57
Income (loss) before equity in net earnings (loss) of subsidiaries	30			11			(3		)	42			22			2			104
Equity in net earnings (loss) of subsidiaries	74			63			42			—			—			(179		)	—
Net income (loss)	104			74			39			42			22			(177		)	104
Other comprehensive (loss) income	(52		)	(52		)	(52		)	(40		)	—			144			(52		)
Comprehensive income (loss)	$	52		$	22		$	(13	)	$	2		$	22		$	(33	)	$	52

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Six Months Ended June 30, 2014



	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
	Parent			URNA			Guarantor Subsidiaries			Foreign			SPV			Eliminations		Total
Net cash provided by (used in) operating activities	$	10		$	928		$	2		$	146		$	(32	)	$	—	$	1,054
Net cash used in investing activities	(10		)	(1,402		)	—			(158		)	—			—		(1,570		)
Net cash provided by (used in) financing activities	—			483			(2		)	(1		)	32			—		512
Effect of foreign exchange rates	—			—			—			(1		)	—			—		(1		)
Net increase (decrease) in cash and cash equivalents	—			9			—			(14		)	—			—		(5		)
Cash and cash equivalents at beginning of period	—			17			—			158			—			—		175
Cash and cash equivalents at end of period	$	—		$	26		$	—		$	144		$	—		$	—	$	170

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Six Months Ended June 30, 2013



	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations		Total
	Parent			URNA			Guarantor Subsidiaries			Foreign			SPV			Eliminations		Total
Net cash provided by (used in) operating activities	$	17		$	717		$	(2	)	$	122		$	24		$	—	$	878
Net cash used in investing activities	(17		)	(710		)	—			(74		)	—			—		(801		)
Net cash (used in) provided by financing activities	—			(20		)	2			(1		)	(24		)	—		(43		)
Effect of foreign exchange rates	—			—			—			(7		)	—			—		(7		)
Net increase in cash and cash equivalents	—			(13		)	—			40			—			—		27
Cash and cash equivalents at beginning of period	—			20			—			86			—			—		106
Cash and cash equivalents at end of period	$	—		$	7		$	—		$	126		$	—		$	—	$	133