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 11 geographic regions—Carolinas, Gulf South, Industrial (which serves the geographic Gulf region and has a strong industrial presence), Mid-Atlantic, Mid Central, Midwest, Northeast, Pacific West, 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 June 30, 2018
Equipment rentals	$	1,332	$	299	$	1,631
Sales of rental equipment	145		12		157
Sales of new equipment	38		6		44
Contractor supplies sales	19		5		24
Service and other revenues	32		3		35
Total revenue	1,566		325		1,891
Depreciation and amortization expense	334		56		390
Equipment rentals gross profit	543		145		688
Three Months Ended June 30, 2017
Equipment rentals	$	1,143	$	224	$	1,367
Sales of rental equipment	122		11		133
Sales of new equipment	43		4		47
Contractor supplies sales	18		3		21
Service and other revenues	26		3		29
Total revenue	1,352		245		1,597
Depreciation and amortization expense	285		45		330
Equipment rentals gross profit	465		111		576
Six Months Ended June 30, 2018
Equipment rentals	$	2,533	$	557	$	3,090
Sales of rental equipment	316		22		338
Sales of new equipment	75		11		86
Contractor supplies sales	33		9		42
Service and other revenues	62		7		69
Total revenue	3,019		606		3,625
Depreciation and amortization expense	671		112		783
Equipment rentals gross profit	969		264		1,233
Capital expenditures	1,153		153		1,306
Six Months Ended June 30, 2017
Equipment rentals	$	2,120	$	413	$	2,533
Sales of rental equipment	218		21		239
Sales of new equipment	78		8		86
Contractor supplies sales	32		7		39
Service and other revenues	50		6		56
Total revenue	2,498		455		2,953
Depreciation and amortization expense	549		91		640
Equipment rentals gross profit	825		195		1,020
Capital expenditures	863		105		968



	June 30, 2018		December 31, 2017
Total reportable segment assets
General rentals	$	13,370	$	13,351
Trench, power and pump	1,738		1,679
Total assets	$	15,108	$	15,030

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						Six Months Ended
	June 30,						June 30,
	2018			2017			2018			2017
Total equipment rentals gross profit	$	688		$	576		$	1,233		$	1,020
Gross profit from other lines of business	94			79			195			149
Selling, general and administrative expenses	(239		)	(218		)	(471		)	(411		)
Merger related costs	(2		)	(14		)	(3		)	(16		)
Restructuring charge	(4		)	(19		)	(6		)	(19		)
Non-rental depreciation and amortization	(67		)	(64		)	(138		)	(126		)
Interest expense, net	(112		)	(113		)	(221		)	(207		)
Other income, net	1			2			2			—
Income before provision for income taxes	$	359		$	229		$	591		$	390