Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [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 September 30, 2014
Equipment rentals	$	1,127	$	188	$	1,315
Sales of rental equipment	133		7		140
Sales of new equipment	31		11		42
Contractor supplies sales	19		4		23
Service and other revenues	21		3		24
Total revenue	1,331		213		1,544
Depreciation and amortization expense	267		39		306
Equipment rentals gross profit	496		103		599
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
Nine Months Ended September 30, 2014
Equipment rentals	$	3,079	$	420	$	3,499
Sales of rental equipment	371		17		388
Sales of new equipment	80		25		105
Contractor supplies sales	55		9		64
Service and other revenues	55		10		65
Total revenue	3,640		481		4,121
Depreciation and amortization expense	789		93		882
Equipment rentals gross profit	1,266		215		1,481
Capital expenditures	1,391		177		1,568
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

	September 30, 2014		December 31, 2013
Total reportable segment assets
General rentals	$	10,747	$	10,677
Trench safety, power and HVAC, and pump solutions (1)	1,736		554
Total assets	$	12,483	$	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						Nine Months Ended
	September 30,						September 30,
	2014			2013			2014			2013
Total equipment rentals gross profit	$	599		$	497		$	1,481		$	1,220
Gross profit from other lines of business	89			67			244			200
Selling, general and administrative expenses	(194		)	(167		)	(549		)	(479		)
Merger related costs	(4		)	—			(13		)	(8		)
Restructuring charge	2			(1		)	2			(12		)
Non-rental depreciation and amortization	(70		)	(59		)	(200		)	(185		)
Interest expense, net	(124		)	(121		)	(436		)	(357		)
Interest expense- subordinated convertible debentures	—			—			—			(3		)
Other income, net	5			2			10			3
Income before provision for income taxes	$	303		$	218		$	539		$	379