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). Other than the guarantee by certain Canadian subsidiaries of URNA's indebtedness under the ABL facility, none of URNA’s indebtedness is guaranteed by URNA's foreign subsidiaries or the SPV (together, the “non-guarantor subsidiaries”). The receivable assets owned by the SPV have been sold by URNA to the SPV and are not available to satisfy the obligations of URNA or Parent’s other 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 September 30, 2014, the amount available for distribution under the most restrictive of these covenants was $369.

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

CONDENSED CONSOLIDATING BALANCE SHEET

September 30, 2014



	Parent		URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
	Parent		URNA			Guarantor Subsidiaries			Foreign			SPV		Eliminations			Total
ASSETS
Cash and cash equivalents	$	—	$	39		$	—		$	129		$	—	$	—		$	168
Accounts receivable, net	—		36			—			142			763		—			941
Intercompany receivable (payable)	314		(244		)	(59		)	(141		)	—		130			—
Inventory	—		100			—			12			—		—			112
Prepaid expenses and other assets	—		46			1			17			—		—			64
Deferred taxes	—		91			—			2			—		—			93
Total current assets	314		68			(58		)	161			763		130			1,378
Rental equipment, net	—		5,515			—			631			—		—			6,146
Property and equipment, net	45		314			21			43			—		—			423
Investments in subsidiaries	1,510		1,174			1,021			—			—		(3,705		)	—
Goodwill	—		2,990			—			280			—		—			3,270
Other intangible assets, net	—		1,061			—			104			—		—			1,165
Other long-term assets	—		101			—			—			—		—			101
Total assets	$	1,869	$	11,223		$	984		$	1,219		$	763	$	(3,575	)	$	12,483
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt	$	31	$	37		$	—		$	—		$	550	$	—		$	618
Accounts payable	—		447			—			58			—		—			505
Accrued expenses and other liabilities	—		503			19			50			—		—			572
Total current liabilities	31		987			19			108			550		—			1,695
Long-term debt	—		7,336			134			7			—		—			7,477
Deferred taxes	22		1,310			—			80			—		—			1,412
Other long-term liabilities	—		80			—			3			—		—			83
Total liabilities	53		9,713			153			198			550		—			10,667
Temporary equity (note 8)	3		—			—			—			—		—			3
Total stockholders’ equity (deficit)	1,813		1,510			831			1,021			213		(3,575		)	1,813
Total liabilities and stockholders’ equity (deficit)	$	1,869	$	11,223		$	984		$	1,219		$	763	$	(3,575	)	$	12,483

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	—		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 September 30, 2014





	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	1,155		$	—		$	160		$	—		$	—		$	1,315
Sales of rental equipment	—			125			—			15			—			—			140
Sales of new equipment	—			35			—			7			—			—			42
Contractor supplies sales	—			20			—			3			—			—			23
Service and other revenues	—			20			—			4			—			—			24
Total revenues	—			1,355			—			189			—			—			1,544
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			418			—			62			—			—			480
Depreciation of rental equipment	—			210			—			26			—			—			236
Cost of rental equipment sales	—			73			—			9			—			—			82
Cost of new equipment sales	—			27			—			6			—			—			33
Cost of contractor supplies sales	—			14			—			2			—			—			16
Cost of service and other revenues	—			8			—			1			—			—			9
Total cost of revenues	—			750			—			106			—			—			856
Gross profit	—			605			—			83			—			—			688
Selling, general and administrative expenses	40			127			—			23			4			—			194
Merger related costs	—			4			—			—			—			—			4
Restructuring charge	—			(2		)	—			—			—			—			(2		)
Non-rental depreciation and amortization	4			58			1			7			—			—			70
Operating (loss) income	(44		)	418			(1		)	53			(4		)	—			422
Interest expense (income), net	3			122			—			—			1			(2		)	124
Other (income) expense, net	(39		)	54			(1		)	6			(25		)	—			(5		)
(Loss) income before provision for income taxes	(8		)	242			—			47			20			2			303
Provision for income taxes	—			91			—			12			8			—			111
(Loss) income before equity in net earnings (loss) of subsidiaries	(8		)	151			—			35			12			2			192
Equity in net earnings (loss) of subsidiaries	200			49			35			—			—			(284		)	—
Net income (loss)	192			200			35			35			12			(282		)	192
Other comprehensive (loss) income	(51		)	(51		)	(51		)	(40		)	—			142			(51		)
Comprehensive income (loss)	$	141		$	149		$	(16	)	$	(5	)	$	12		$	(140	)	$	141

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Three Months Ended September 30, 2013




	Parent			URNA		Guarantor Subsidiaries			Non-Guarantor Subsidiaries					Eliminations			Total
									Foreign		SPV
Revenues:
Equipment rentals	$	—		$	990	$	—		$	148	$	—		$	—		$	1,138
Sales of rental equipment	—			91		—			11		—			—			102
Sales of new equipment	—			24		—			5		—			—			29
Contractor supplies sales	—			19		—			4		—			—			23
Service and other revenues	—			15		—			4		—			—			19
Total revenues	—			1,139		—			172		—			—			1,311
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			366		—			56		—			—			422
Depreciation of rental equipment	—			193		—			26		—			—			219
Cost of rental equipment sales	—			56		—			6		—			—			62
Cost of new equipment sales	—			20		—			3		—			—			23
Cost of contractor supplies sales	—			12		—			3		—			—			15
Cost of service and other revenues	—			4		—			2		—			—			6
Total cost of revenues	—			651		—			96		—			—			747
Gross profit	—			488		—			76		—			—			564
Selling, general and administrative expenses	7			134		—			23		3			—			167
Restructuring charge	—			1		—			—		—			—			1
Non-rental depreciation and amortization	5			49		—			5		—			—			59
Operating (loss) income	(12		)	304		—			48		(3		)	—			337
Interest expense (income), net	3			115		1			1		2			(1		)	121
Other (income) expense, net	(35		)	50		—			5		(22		)	—			(2		)
Income (loss) before provision (benefit) for income taxes	20			139		(1		)	42		17			1			218
Provision (benefit) for income taxes	12			47		(1		)	11		6			—			75
Income before equity in net earnings (loss) of subsidiaries	8			92		—			31		11			1			143
Equity in net earnings (loss) of subsidiaries	135			43		31			—		—			(209		)	—
Net income (loss)	143			135		31			31		11			(208		)	143
Other comprehensive income (loss)	21			21		22			16		—			(59		)	21
Comprehensive income (loss)	$	164		$	156	$	53		$	47	$	11		$	(267	)	$	164

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Nine Months Ended September 30, 2014




	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	3,069		$	—		$	430		$	—		$	—		$	3,499
Sales of rental equipment	—			347			—			41			—			—			388
Sales of new equipment	—			87			—			18			—			—			105
Contractor supplies sales	—			54			—			10			—			—			64
Service and other revenues	—			52			—			13			—			—			65
Total revenues	—			3,609			—			512			—			—			4,121
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			1,155			—			181			—			—			1,336
Depreciation of rental equipment	—			606			—			76			—			—			682
Cost of rental equipment sales	—			203			—			24			—			—			227
Cost of new equipment sales	—			70			—			14			—			—			84
Cost of contractor supplies sales	—			37			—			7			—			—			44
Cost of service and other revenues	—			18			—			5			—			—			23
Total cost of revenues	—			2,089			—			307			—			—			2,396
Gross profit	—			1,520			—			205			—			—			1,725
Selling, general and administrative expenses	59			421			2			66			1			—			549
Merger related costs	—			13			—			—			—			—			13
Restructuring charge	—			(2		)	—			—			—			—			(2		)
Non-rental depreciation and amortization	13			167			1			19			—			—			200
Operating (loss) income	(72		)	921			(3		)	120			(1		)	—			965
Interest expense (income), net	10			422			3			3			3			(5		)	436
Other (income) expense, net	(108		)	152			(2		)	13			(65		)	—			(10		)
Income (loss) before provision for income taxes	26			347			(4		)	104			61			5			539
Provision for income taxes	1			141			—			27			24			—			193
Income (loss) before equity in net earnings (loss) of subsidiaries	25			206			(4		)	77			37			5			346
Equity in net earnings (loss) of subsidiaries	321			115			77			—			—			(513		)	—
Net income (loss)	346			321			73			77			37			(508		)	346
Other comprehensive (loss) income	(54		)	(54		)	(53		)	(42		)	—			149			(54		)
Comprehensive income (loss)	$	292		$	267		$	20		$	35		$	37		$	(359	)	$	292

CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME

For the Nine Months Ended September 30, 2013




	Parent			URNA			Guarantor Subsidiaries			Non-Guarantor Subsidiaries						Eliminations			Total
										Foreign			SPV
Revenues:
Equipment rentals	$	—		$	2,641		$	—		$	422		$	—		$	—		$	3,063
Sales of rental equipment	—			319			—			37			—			—			356
Sales of new equipment	—			58			—			16			—			—			74
Contractor supplies sales	—			53			—			13			—			—			66
Service and other revenues	—			46			—			12			—			—			58
Total revenues	—			3,117			—			500			—			—			3,617
Cost of revenues:
Cost of equipment rentals, excluding depreciation	—			1,035			—			179			—			—			1,214
Depreciation of rental equipment	—			555			—			74			—			—			629
Cost of rental equipment sales	—			210			—			22			—			—			232
Cost of new equipment sales	—			47			—			12			—			—			59
Cost of contractor supplies sales	—			35			—			9			—			—			44
Cost of service and other revenues	—			14			—			5			—			—			19
Total cost of revenues	—			1,896			—			301			—			—			2,197
Gross profit	—			1,221			—			199			—			—			1,420
Selling, general and administrative expenses	16			393			—			68			2			—			479
Merger related costs	—			8			—			—			—			—			8
Restructuring charge	—			12			—			—			—			—			12
Non-rental depreciation and amortization	13			157			—			15			—			—			185
Operating (loss) income	(29		)	651			—			116			(2		)	—			736
Interest expense (income), net	9			341			4			2			4			(3		)	357
Interest expense-subordinated convertible debentures	3			—			—			—			—			—			3
Other (income) expense, net	(100		)	143			—			14			(60		)	—			(3		)
Income (loss) before provision (benefit) for income taxes	59			167			(4		)	100			54			3			379
Provision (benefit) for income taxes	21			64			(1		)	27			21			—			132
Income (loss) before equity in net earnings (loss) of subsidiaries	38			103			(3		)	73			33			3			247
Equity in net earnings (loss) of subsidiaries	209			106			73			—			—			(388		)	—
Net income (loss)	247			209			70			73			33			(385		)	247
Other comprehensive (loss) income	(31		)	(31		)	(30		)	(24		)	—			85			(31		)
Comprehensive income (loss)	$	216		$	178		$	40		$	49		$	33		$	(300	)	$	216

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Nine Months Ended September 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	$	11		$	1,369		$	3		$	180		$	(97	)	$	—	$	1,466
Net cash used in investing activities	(11		)	(1,696		)	—			(199		)	—			—		(1,906		)
Net cash provided by (used in) financing activities	—			349			(3		)	(2		)	97			—		441
Effect of foreign exchange rates	—			—			—			(8		)	—			—		(8		)
Net increase (decrease) in cash and cash equivalents	—			22			—			(29		)	—			—		(7		)
Cash and cash equivalents at beginning of period	—			17			—			158			—			—		175
Cash and cash equivalents at end of period	$	—		$	39		$	—		$	129		$	—		$	—	$	168

CONDENSED CONSOLIDATING CASH FLOW INFORMATION

For the Nine Months Ended September 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	$	21		$	948		$	3		$	150		$	(7	)	$	—	$	1,115
Net cash used in investing activities	(21		)	(1,065		)	—			(122		)	—			—		(1,208		)
Net cash provided by (used in) financing activities	—			113			(3		)	(1		)	7			—		116
Effect of foreign exchange rates	—			—			—			(4		)	—			—		(4		)
Net (decrease) increase in cash and cash equivalents	—			(4		)	—			23			—			—		19
Cash and cash equivalents at beginning of period	—			20			—			86			—			—		106
Cash and cash equivalents at end of period	$	—		$	16		$	—		$	109		$	—		$	—	$	125