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Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2016
Quarterly Financial Information Disclosure [Abstract]  
Quarterly Financial Information (Unaudited)
Quarterly Financial Information (Unaudited)
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter 
 
Fourth
Quarter
 
Full
Year
For the year ended December 31, 2016 (1):
 
 
 
 
 
 
 
 
 
Total revenues
$
1,310

 
$
1,421

 
$
1,508

 
$
1,523

 
$
5,762

Gross profit
500

 
590

 
656

 
657

 
2,403

Operating income
254

 
347

 
412

 
402

 
1,415

Net income
92

 
134

 
187

 
153

 
566

Earnings per share—basic
1.01

 
1.52

 
2.18

 
1.82

 
6.49

Earnings per share—diluted (3)
1.01

 
1.52

 
2.16

 
1.80

 
6.45

For the year ended December 31, 2015 (2):
 
 
 
 
 
 
 
 
 
Total revenues
$
1,315

 
$
1,429

 
$
1,550

 
$
1,523

 
$
5,817

Gross profit
524

 
618

 
690

 
648

 
2,480

Operating income
300

 
375

 
446

 
397

 
1,518

Net income
115

 
86

 
215

 
169

 
585

Earnings per share—basic
1.19

 
0.89

 
2.28

 
1.82

 
6.14

Earnings per share—diluted (3)
1.16

 
0.88

 
2.25

 
1.81

 
6.07

 
(1)
The fourth quarter of 2016 includes $6 of restructuring charges associated with the restructuring program we initiated in the fourth quarter of 2015 and closed in the fourth quarter of 2016, which is discussed further in note 4 to our consolidated financial statements. Additionally, as discussed in note 11 to our consolidated financial statements, in the fourth quarter of 2016, we redeemed $850 principal amount of our 7 5/8 percent Senior Notes due 2022 and issued $750 principal amount of 5 1/2 percent Senior Notes due 2027. Upon the partial redemption of the 7 5/8 percent Senior Notes due 2022, we recognized a loss of $65 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the redeemed notes.
(2)
The fourth quarter of 2015 included a decrease in stock compensation, net of $14 as compared to the fourth quarter of 2014 primarily due to lower than expected revenue and profitability. Additionally, as discussed in note 4 to our consolidated financial statements, in the fourth quarter of 2015, we initiated a restructuring program in response to recent challenges in our operating environment. Though we expected solid industry growth in 2016, the restructuring program was initiated in an effort to reduce costs in an environment with continuing pressures on volume and pricing. We recognized $4 of costs for the program in the fourth quarter of 2015. The program was completed in the fourth quarter of 2016. Additionally, during the fourth quarter of 2015, we reached agreement on a settlement that provided us with a $5 refund on previously paid property taxes. We recognized a reduction of $5 in cost of equipment rentals, excluding depreciation, associated with the settlement during the fourth quarter of 2015. Additionally, our provision for income taxes for the fourth quarter of 2015 includes the impact of a $5 increase in valuation allowances resulting from the enactment of Connecticut state limitations on net operating loss utilization.
(3)
Diluted earnings per share includes the after-tax impacts of the following:  
 
First
Quarter
 
Second
Quarter
 
Third
Quarter 
 
Fourth
Quarter
 
Full
Year
For the year ended December 31, 2016:
 
 
 
 
 
 
 
 
 
Merger related intangible asset amortization (5)
$
(0.30
)
 
$
(0.28
)
 
$
(0.28
)
 
$
(0.29
)
 
$
(1.12
)
Impact of the fair value mark-up of acquired RSC fleet (7)
(0.06
)
 
(0.06
)
 
(0.05
)
 
(0.06
)
 
(0.25
)
Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8)
—

 
—

 
—

 
—

 
0.01

Restructuring charge (9)
(0.01
)
 
(0.02
)
 
(0.02
)
 
(0.05
)
 
(0.11
)
Asset impairment charge (11)
(0.02
)
 
—

 
—

 
—

 
(0.03
)
Loss on extinguishment of debt securities and amendment of ABL facility
—

 
(0.18
)
 
(0.07
)
 
(0.47
)
 
(0.70
)
For the year ended December 31, 2015:
 
 
 
 
 
 
 
 
 
Merger related costs (4)
$
0.17

 
$
—

 
$
—

 
$
—

 
$
0.17

Merger related intangible asset amortization (5)
(0.32
)
 
(0.27
)
 
(0.28
)
 
(0.28
)
 
(1.15
)
Impact on depreciation related to acquired RSC fleet and property and equipment (6)
0.01

 
—

 
—

 
—

 
0.02

Impact of the fair value mark-up of acquired RSC fleet (7)
(0.04
)
 
(0.04
)
 
(0.04
)
 
(0.07
)
 
(0.19
)
Impact on interest expense related to fair value adjustment of acquired RSC indebtedness (8)
0.01

 
—

 
—

 
—

 
0.02

Restructuring charge (9)
—

 
—

 
—

 
(0.03
)
 
(0.04
)
Loss on extinguishment of debt securities
(0.01
)
 
(0.76
)
 
—

 
—

 
(0.78
)

 
(4)
This reflects transaction costs associated with the National Pump acquisition discussed above. The income during the year ended December 31, 2015 reflects a decline in the fair value of the contingent cash consideration component of the National Pump purchase price.
(5)
This reflects the amortization of the intangible assets acquired in the RSC and National Pump acquisitions.
(6)
This reflects the impact of extending the useful lives of equipment acquired in the RSC acquisition, net of the impact of additional depreciation associated with the fair value mark-up of such equipment.
(7)
This reflects additional costs recorded in cost of rental equipment sales associated with the fair value mark-up of rental equipment acquired in the RSC acquisition and subsequently sold.
(8)
This reflects a reduction of interest expense associated with the fair value mark-up of debt acquired in the RSC acquisition.
(9)
As discussed in note 4 to our consolidated financial statements, this reflects severance costs and branch closure charges associated with our restructuring programs.