Segment Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment Information

Segment Information

Our two 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. We periodically review the size and geographic scope of our regions, and have occasionally reorganized the regions to create a more balanced and effective structure. 

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 energy and petrochemical 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.

The following table presents the percentage of equipment rental revenue by equipment type for the years ended December 31, 2016, 2015 and 2014:

	Year Ended December 31,
	2016		2015		2014
Primarily rented by our general rentals segment:
General construction and industrial equipment	43	%	43	%	43	%
Aerial work platforms	32	%	32	%	33	%
General tools and light equipment	8	%	10	%	10	%
Primarily rented by our trench, power and pump segment:
Power and HVAC equipment	7	%	6	%	6	%
Trench safety equipment	6	%	5	%	5	%
Pumps	4	%	4	%	3	%

These segments align our external segment reporting with how management evaluates business performance and allocates resources. We evaluate segment performance based on segment equipment rentals gross profit.

The accounting policies for our segments are the same as those described in the summary of significant accounting policies in note 2. Certain corporate costs, including those related to selling, finance, legal, risk management, human resources, corporate management and information technology systems, are deemed to be of an operating nature and are allocated to our segments based primarily on rental fleet size.

The following table sets forth financial information by segment as of and for the years ended December 31, 2016, 2015 and 2014:

	General rentals		Trench, power and pump		Total
2016
Equipment rentals	$	4,166	$	775	$	4,941
Sales of rental equipment	459		37		496
Sales of new equipment	128		16		144
Contractor supplies sales	64		15		79
Service and other revenues	91		11		102
Total revenue	4,908		854		5,762
Depreciation and amortization expense	1,066		179		1,245
Equipment rentals gross profit	1,725		364		2,089
Capital expenditures	1,189		150		1,339
Total assets	$	10,496	$	1,492	$	11,988
2015
Equipment rentals	$	4,241	$	708	$	4,949
Sales of rental equipment	504		34		538
Sales of new equipment	137		20		157
Contractor supplies sales	67		12		79
Service and other revenues	83		11		94
Total revenue	5,032		785		5,817
Depreciation and amortization expense	1,071		173		1,244
Equipment rentals gross profit	1,819		328		2,147
Capital expenditures	1,439		197		1,636
Total assets	$	10,561	$	1,522	$	12,083
2014
Equipment rentals	$	4,222	$	597	$	4,819
Sales of rental equipment	519		25		544
Sales of new equipment	113		36		149
Contractor supplies sales	73		12		85
Service and other revenues	75		13		88
Total revenue	5,002		683		5,685
Depreciation and amortization expense	1,060		134		1,194
Equipment rentals gross profit	1,790		302		2,092
Capital expenditures	1,594		227		1,821
Total assets	$	10,597	$	1,532	$	12,129

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:

	Year Ended December 31,
	2016			2015			2014
Total equipment rentals gross profit	$	2,089		$	2,147		$	2,092
Gross profit from other lines of business	314			333			340
Selling, general and administrative expenses	(719		)	(714		)	(758		)
Merger related costs	—			26			(11		)
Restructuring charge	(14		)	(6		)	1
Non-rental depreciation and amortization	(255		)	(268		)	(273		)
Interest expense, net	(511		)	(567		)	(555		)
Other income, net	5			12			14
Income before provision for income taxes	$	909		$	963		$	850

We operate in the United States and Canada. The following table presents geographic area information for the years ended December 31, 2016, 2015 and 2014, except for balance sheet information, which is presented as of December 31, 2016 and 2015:

	Domestic		Foreign (Canada)		Total
2016
Equipment rentals	$	4,524	$	417	$	4,941
Sales of rental equipment	444		52		496
Sales of new equipment	129		15		144
Contractor supplies sales	68		11		79
Service and other revenues	87		15		102
Total revenue	5,252		510		5,762
Rental equipment, net	5,709		480		6,189
Property and equipment, net	390		40		430
Goodwill and other intangibles, net	$	3,699	$	303	$	4,002
2015
Equipment rentals	$	4,452	$	497	$	4,949
Sales of rental equipment	480		58		538
Sales of new equipment	137		20		157
Contractor supplies sales	69		10		79
Service and other revenues	80		14		94
Total revenue	5,218		599		5,817
Rental equipment, net	5,657		529		6,186
Property and equipment, net	399		46		445
Goodwill and other intangibles, net	$	3,838	$	310	$	4,148
2014
Equipment rentals	$	4,217	$	602	$	4,819
Sales of rental equipment	478		66		544
Sales of new equipment	124		25		149
Contractor supplies sales	70		15		85
Service and other revenues	73		15		88
Total revenue	$	4,962	$	723	$	5,685