Segment Information

9 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are i) general rentals and ii) trench, power and pump. The general rentals segment includes the rental of i) general construction and industrial equipment, such as backhoes, skid-steer loaders, forklifts, earthmoving equipment and material handling equipment, ii) aerial work platforms, such as boom lifts and scissor lifts and iii) general tools and light equipment, such as pressure washers, water pumps and power tools. The general rentals segment reflects the aggregation of nine geographic regions—Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Midwest, Northeast, Pacific West, South-Central, South, Southeast and Western Canada—and operates throughout the United States and Canada.

The trench, power and pump segment includes the rental of specialty construction products such as i) trench safety equipment, such as trench shields, aluminum hydraulic shoring systems, slide rails, crossing plates, construction lasers and line testing equipment for underground work, ii) power and HVAC equipment, such as portable diesel generators, electrical distribution equipment, and temperature control equipment and iii) pumps primarily used by municipalities, industrial plants, and mining, construction, and agribusiness customers. The trench, power and pump segment is comprised of the following regions, each of which primarily rents the corresponding equipment type described above: (i) the Trench Safety region, (ii) the Power and HVAC region, and (iii) the Pump Solutions region. The trench, power and pump 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, power and pump		Total
Three Months Ended September 30, 2016
Equipment rentals	$	1,097	$	225	$	1,322
Sales of rental equipment	103		9		112
Sales of new equipment	27		3		30
Contractor supplies sales	16		3		19
Service and other revenues	23		2		25
Total revenue	1,266		242		1,508
Depreciation and amortization expense	266		45		311
Equipment rentals gross profit	469		117		586
Three Months Ended September 30, 2015
Equipment rentals	$	1,120	$	206	$	1,326
Sales of rental equipment	132		9		141
Sales of new equipment	33		5		38
Contractor supplies sales	18		3		21
Service and other revenues	23		1		24
Total revenue	1,326		224		1,550
Depreciation and amortization expense	272		43		315
Equipment rentals gross profit	500		107		607
Nine Months Ended September 30, 2016
Equipment rentals	$	3,067	$	576	$	3,643
Sales of rental equipment	334		27		361
Sales of new equipment	84		12		96
Contractor supplies sales	49		11		60
Service and other revenues	71		8		79
Total revenue	3,605		634		4,239
Depreciation and amortization expense	791		136		927
Equipment rentals gross profit	1,243		274		1,517
Capital expenditures	1,086		124		1,210
Nine Months Ended September 30, 2015
Equipment rentals	$	3,144	$	527	$	3,671
Sales of rental equipment	356		25		381
Sales of new equipment	94		16		110
Contractor supplies sales	51		9		60
Service and other revenues	65		7		72
Total revenue	3,710		584		4,294
Depreciation and amortization expense	798		128		926
Equipment rentals gross profit	1,339		249		1,588
Capital expenditures	1,325		176		1,501

	September 30, 2016		December 31, 2015
Total reportable segment assets
General rentals	$	10,731	$	10,561
Trench, power and pump	1,544		1,522
Total assets	$	12,275	$	12,083

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,
	2016			2015			2016			2015
Total equipment rentals gross profit	$	586		$	607		$	1,517		$	1,588
Gross profit from other lines of business	70			83			229			244
Selling, general and administrative expenses	(179		)	(178		)	(533		)	(534		)
Merger related costs	—			—			—			26
Restructuring charge	(4		)	—			(8		)	(1		)
Non-rental depreciation and amortization	(61		)	(66		)	(192		)	(202		)
Interest expense, net	(110		)	(107		)	(349		)	(460		)
Other income, net	1			1			3			10
Income before provision for income taxes	$	303		$	340		$	667		$	671