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Quarterly Financial Information (Unaudited)
 12 Months Ended
Dec. 31, 2018
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, 2018 (1):
 
 
 
 
 
 
 
 
 
Total revenues
$
1,734

 
$
1,891

 
$
2,116

 
$
2,306

 
$
8,047

Gross profit
646

 
782

 
938

 
998

 
3,364

Operating income
340

 
470

 
578

 
563

 
1,951

Net income (1)
183

 
270

 
333

 
310

 
1,096

Earnings per share—basic
2.18

 
3.22

 
4.05

 
3.84

 
13.26

Earnings per share—diluted (3)
2.15

 
3.20

 
4.01

 
3.80

 
13.12

For the year ended December 31, 2017 (2):
 
 
 
 
 
 
 
 
 
Total revenues
$
1,356

 
$
1,597

 
$
1,766

 
$
1,922

 
$
6,641

Gross profit
514

 
655

 
773

 
827

 
2,769

Operating income
257

 
340

 
448

 
462

 
1,507

Net income (2)
109

 
141

 
199

 
897

 
1,346

Earnings per share—basic
1.29

 
1.67

 
2.36

 
10.60

 
15.91

Earnings per share—diluted (3)
1.27

 
1.65

 
2.33

 
10.45

 
15.73

 
(1)
As discussed in note 13 to our consolidated financial statements, the Tax Act was enacted in December 2017. The Tax Act reduced the U.S. federal corporate tax rate from 35 percent to 21 percent, and net income for 2018 reflects the decreased tax rate. The fourth quarter of 2018 includes $22 of merger related costs and $16 of restructuring charges primarily associated with the BakerCorp and BlueLine acquisitions discussed in note 4 to our consolidated financial statements.
(2)
Net income for the fourth quarter and full year 2017 includes a benefit of $689, or $8.03 and $8.05 per diluted share for the fourth quarter and full year 2017, respectively, associated with the enactment of the Tax Act discussed further in note 13 to our consolidated financial statements. The fourth quarter of 2017 includes $18 of merger related costs and $22 of restructuring charges primarily associated with the NES and Neff acquisitions discussed in note 4 to our consolidated financial statements. Additionally, in the fourth quarter of 2017, we redeemed the remaining $225 principal amount of our 7 5/8 percent Senior Notes due 2022. Upon the redemption of these notes, we recognized a loss of $11 in interest expense, net. The loss represented the difference between the net carrying amount and the total purchase price of the
redeemed notes. The fourth quarter of 2017 also reflects a year-over-year increase of $11 in stock compensation expense primarily due to the impact of increased revenue, improved profitability, and increases in our stock price and in the volume of stock awards.
(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, 2018:
 
 
 
 
 
 
 
 
 
Merger related costs (4)
$
(0.01
)
 
$
(0.02
)
 
$
(0.09
)
 
$
(0.21
)
 
$
(0.32
)
Merger related intangible asset amortization (5)
(0.39
)
 
(0.37
)
 
(0.42
)
 
(0.58
)
 
(1.76
)
Impact on depreciation related to acquired fleet and property and equipment (6)
(0.09
)
 
(0.08
)
 
(0.02
)
 
—

 
(0.19
)
Impact of the fair value mark-up of acquired fleet (7)
(0.21
)
 
(0.15
)
 
(0.11
)
 
(0.11
)
 
(0.59
)
Restructuring charge (8)
(0.02
)
 
(0.03
)
 
(0.09
)
 
(0.15
)
 
(0.28
)
For the year ended December 31, 2017:
 
 
 
 
 
 
 
 
 
Merger related costs (4)
$
(0.02
)
 
$
(0.09
)
 
$
(0.12
)
 
$
(0.13
)
 
$
(0.36
)
Merger related intangible asset amortization (5)
(0.28
)
 
(0.30
)
 
(0.27
)
 
(0.32
)
 
(1.15
)
Impact on depreciation related to acquired fleet and property and equipment (6)
—

 
0.03

 
(0.07
)
 
(0.01
)
 
(0.05
)
Impact of the fair value mark-up of acquired fleet (7)
(0.06
)
 
(0.13
)
 
(0.17
)
 
(0.23
)
 
(0.59
)
Restructuring charge (8)
—

 
(0.14
)
 
(0.07
)
 
(0.15
)
 
(0.36
)
Asset impairment charge (9)
—

 
—

 
—

 
—

 
(0.01
)
Loss on extinguishment of debt securities and amendment of ABL facility
—

 
(0.09
)
 
(0.22
)
 
(0.08
)
 
(0.39
)

 
(4)
This reflects transaction costs associated with the NES, Neff, BakerCorp and BlueLine acquisitions discussed in note 4 to our consolidated financial statements.
(5)
This reflects the amortization of the intangible assets acquired in the RSC, National Pump, NES, Neff, BakerCorp and BlueLine acquisitions.
(6)
This reflects the impact of extending the useful lives of equipment acquired in the RSC, NES, Neff, BakerCorp and BlueLine acquisitions, 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, NES, Neff and BlueLine acquisitions and subsequently sold.
(8)
As discussed in note 6 to our consolidated financial statements, this primarily reflects severance costs and branch closure charges associated with our restructuring programs.
(9)
This reflects write-offs of leasehold improvements and other fixed assets in connection with our restructuring programs.