Segment Information

3 Months Ended

Mar. 31, 2020

Our reportable segments are i) general rentals and ii) trench, power and fluid solutions. Our regions discussed below, which are our operating segments, are aggregated into our reportable segments. We believe that the regions that are aggregated into our reportable segments have similar economic characteristics, as each region is capital intensive, offers similar products to similar customers, uses similar methods to distribute its products, and is subject to similar competitive risks. The aggregation of our regions also reflects the management structure that we use for making operating decisions and assessing performance. We evaluate segment performance primarily based on segment equipment rentals gross profit.

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 containment, 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.

The following tables set forth financial information by segment.



	General rentals		Trench, power and fluid solutions		Total
Three Months Ended March 31, 2020
Equipment rentals	$	1,394	$	389	$	1,783
Sales of rental equipment	190		18		208
Sales of new equipment	53		9		62
Contractor supplies sales	16		9		25
Service and other revenues	41		6		47
Total revenue	1,694		431		2,125
Depreciation and amortization expense	437		89		526
Equipment rentals gross profit	448		162		610
Capital expenditures	198		63		261
Three Months Ended March 31, 2019
Equipment rentals	$	1,423	$	372	$	1,795
Sales of rental equipment	178		14		192
Sales of new equipment	55		7		62
Contractor supplies sales	17		7		24
Service and other revenues	37		7		44
Total revenue	1,710		407		2,117
Depreciation and amortization expense	412		87		499
Equipment rentals gross profit	501		157		658
Capital expenditures	236		63		299



	March 31, 2020		December 31, 2019
Total reportable segment assets
General rentals	$	15,994	$	16,036
Trench, power and fluid solutions	2,874		2,934
Total assets	$	18,868	$	18,970

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
	March 31,
	2020			2019
Total equipment rentals gross profit	$	610		$	658
Gross profit from other lines of business	117			103
Selling, general and administrative expenses	(267		)	(280		)
Merger related costs	—			(1		)
Restructuring charge	(2		)	(8		)
Non-rental depreciation and amortization	(100		)	(104		)
Interest expense, net	(136		)	(151		)
Other income, net	4			3
Income before provision for income taxes	$	226		$	220