Segment Information

Following the acquisition of BakerCorp discussed in note 3 to the condensed consolidated financial statements, we changed the name of our former “trench, power and pump” segment to “trench, power and fluid solutions”. The locations acquired in the BakerCorp acquisition are in our Fluid Solutions (before the acquisition, “Pump Solutions”) and Fluid Solutions Europe regions, both of which are in the trench, power and fluid solutions segment. The changes to the region and segment names reflect a broader product offering following the BakerCorp acquisition.

Our reportable segments are i) general rentals and ii) trench, power and fluid solutions. 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 fluid solutions 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) fluid solutions equipment primarily used for fluid storage, transfer and treatment. The trench, power and fluid solutions 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, iii) the Fluid Solutions region and iv) the Fluid Solutions Europe region. The trench, power and fluid solutions segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment operates throughout the United States and in Canada and Europe.

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 fluid solutions		Total
Three Months Ended September 30, 2018
Equipment rentals	$	1,444	$	417	$	1,861
Sales of rental equipment	130		10		140
Sales of new equipment	50		4		54
Contractor supplies sales	17		7		24
Service and other revenues	33		4		37
Total revenue	1,674		442		2,116
Depreciation and amortization expense	351		67		418
Equipment rentals gross profit	629		218		847
Three Months Ended September 30, 2017
Equipment rentals	$	1,237	$	299	$	1,536
Sales of rental equipment	130		9		139
Sales of new equipment	34		6		40
Contractor supplies sales	17		4		21
Service and other revenues	26		4		30
Total revenue	1,444		322		1,766
Depreciation and amortization expense	306		47		353
Equipment rentals gross profit	525		164		689
Nine Months Ended September 30, 2018
Equipment rentals	$	3,977	$	974	$	4,951
Sales of rental equipment	446		32		478
Sales of new equipment	125		15		140
Contractor supplies sales	50		16		66
Service and other revenues	95		11		106
Total revenue	4,693		1,048		5,741
Depreciation and amortization expense	1,022		179		1,201
Equipment rentals gross profit	1,598		482		2,080
Capital expenditures	1,845		251		2,096
Nine Months Ended September 30, 2017
Equipment rentals	$	3,357	$	712	$	4,069
Sales of rental equipment	348		30		378
Sales of new equipment	112		14		126
Contractor supplies sales	49		11		60
Service and other revenues	76		10		86
Total revenue	3,942		777		4,719
Depreciation and amortization expense	855		138		993
Equipment rentals gross profit	1,350		359		1,709
Capital expenditures	1,404		168		1,572



	September 30, 2018		December 31, 2017
Total reportable segment assets
General rentals	$	13,766	$	13,351
Trench, power and fluid solutions (1)	2,588		1,679
Total assets	$	16,354	$	15,030

(1) The increase in the trench, power and fluid solutions assets primarily reflects the impact of the BakerCorp acquisition discussed in note 3 to the condensed consolidated financial statements.

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,
	2018			2017			2018			2017
Total equipment rentals gross profit	$	847		$	689		$	2,080		$	1,709
Gross profit from other lines of business	91			84			286			233
Selling, general and administrative expenses	(265		)	(237		)	(736		)	(648		)
Merger related costs	(11		)	(16		)	(14		)	(32		)
Restructuring charge	(9		)	(9		)	(15		)	(28		)
Non-rental depreciation and amortization	(75		)	(63		)	(213		)	(189		)
Interest expense, net	(118		)	(131		)	(339		)	(338		)
Other income, net	—			5			2			5
Income before provision for income taxes	$	460		$	322		$	1,051		$	712