XML 30 R19.htm IDEA: XBRL DOCUMENT v3.20.2
Condensed Consolidating Financial Information of Guarantor Subsidiaries
 6 Months Ended
Jun. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information of Guarantor Subsidiaries Condensed Consolidating Financial Information of Guarantor Subsidiaries
URNA is 100 percent owned by Holdings (“Parent”) and has certain outstanding indebtedness that is guaranteed by both Parent and, with the exception of its U.S. special purpose vehicle which holds receivable assets relating to the Company’s accounts receivable securitization facility (the “SPV”), all of URNA’s U.S. subsidiaries (the “guarantor subsidiaries”). Other than the guarantee by certain Canadian subsidiaries of URNA's indebtedness under the ABL facility, none of URNA’s indebtedness is guaranteed by URNA's foreign subsidiaries or the SPV (together, the “non-guarantor subsidiaries”). The receivable assets owned by the SPV have been sold or contributed by URNA to the SPV and are not available to satisfy the obligations of URNA or Parent’s other subsidiaries. The guarantor subsidiaries are all 100 percent-owned and the guarantees are made on a joint and several basis. The guarantees are not full and unconditional because a guarantor subsidiary can be automatically released and relieved of its obligations under certain circumstances, including sale of the guarantor subsidiary, the sale of all or substantially all of the guarantor subsidiary's assets, the requirements for legal defeasance or covenant defeasance under the applicable indenture being met, designating the guarantor subsidiary as an unrestricted subsidiary for purposes of the applicable covenants or the notes being rated investment grade by both Standard & Poor’s Ratings Services and Moody’s Investors Service, Inc., or, in certain circumstances, another rating agency selected by URNA. The guarantees are also subject to subordination provisions (to the same extent that the obligations of the issuer under the relevant notes are subordinated to other debt of the issuer) and to a standard limitation which provides that the maximum amount guaranteed by each guarantor will not exceed the maximum amount that can be guaranteed without making the guarantee void under fraudulent conveyance laws. Based on our understanding of Rule 3-10 of Regulation S-X ("Rule 3-10"), we believe that the guarantees of the guarantor subsidiaries comply with the conditions set forth in Rule 3-10 and therefore continue to utilize Rule 3-10 to present condensed consolidating financial information for Holdings, URNA, the guarantor subsidiaries and the non-guarantor subsidiaries. Separate consolidated financial statements of the guarantor subsidiaries have not been presented because management believes that such information would not be material to investors. However, condensed consolidating financial information is presented.
Covenants in the ABL, accounts receivable securitization and term loan facilities, and the other agreements governing our debt, impose operating and financial restrictions on URNA, Parent and the guarantor subsidiaries, including limitations on the ability to make share repurchases and dividend payments. As of June 30, 2020, the amount available for distribution under the most restrictive of these covenants was $508. The Company’s total available capacity for making share repurchases and dividend payments includes the intercompany receivable balance of Parent. As of June 30, 2020, our total available capacity for making share repurchases and dividend payments, which includes URNA’s capacity to make restricted payments and the intercompany receivable balance of Parent, was $3.192 billion.
The condensed consolidating financial information of Parent and its subsidiaries is as follows:
CONDENSED CONSOLIDATING BALANCE SHEET
June 30, 2020  
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
 ForeignSPV
ASSETS
Cash and cash equivalents$—  $36  $—  $91  $—  $—  $127  
Accounts receivable, net—  —  —  119  1,107  —  1,226  
Intercompany receivable (payable)2,684  (2,577) (99) (9) 1  —  —  
Inventory—  97  —  10  —  —  107  
Prepaid expenses and other assets—  135  —  27  —  —  162  
Total current assets2,684  (2,309) (99) 238  1,108  —  1,622  
Rental equipment, net—  8,383  —  703  —  —  9,086  
Property and equipment, net107  393  64  45  —  —  609  
Investments in subsidiaries1,125  1,524  1,023  —  —  (3,672) —  
Goodwill—  4,756  —  379  —  —  5,135  
Other intangible assets, net—  712  —  49  —  —  761  
Operating lease right-of-use assets—  182  418  66  —  —  666  
Other long-term assets13  8  —  —  —  —  21  
Total assets$3,929  $13,649  $1,406  $1,480  $1,108  $(3,672) $17,900  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt$—  $61  $—  $2  $743  $—  $806  
Accounts payable—  280  —  36  —  —  316  
Accrued expenses and other liabilities—  632  121  45  1  —  799  
Total current liabilities—  973  121  83  744  —  1,921  
Long-term debt—  9,583  7  9  —  —  9,599  
Deferred taxes22  1,703  —  95  —  —  1,820  
Operating lease liabilities—  144  334  54  —  —  532  
Other long-term liabilities—  121  —  —  —  —  121  
Total liabilities22  12,524  462  241  744  —  13,993  
Total stockholders’ equity (deficit)3,907  1,125  944  1,239  364  (3,672) 3,907  
Total liabilities and stockholders’ equity (deficit)$3,929  $13,649  $1,406  $1,480  $1,108  $(3,672) $17,900  
CONDENSED CONSOLIDATING BALANCE SHEET
December 31, 2019
 
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
 ForeignSPV
ASSETS
Cash and cash equivalents$—  $28  $—  $24  $—  $—  $52  
Accounts receivable, net—  —  —  171  1,359  —  1,530  
Intercompany receivable (payable)2,255  (2,130) (112) (14) 1  —  —  
Inventory—  108  —  12  —  —  120  
Prepaid expenses and other assets—  124  —  16  —  —  140  
Total current assets2,255  (1,870) (112) 209  1,360  —  1,842  
Rental equipment, net—  8,995  —  792  —  —  9,787  
Property and equipment, net76  400  78  50  —  —  604  
Investments in subsidiaries1,509  1,636  1,069  —  —  (4,214) —  
Goodwill—  4,759  —  395  —  —  5,154  
Other intangible assets, net—  833  —  62  —  —  895  
Operating lease right-of-use assets—  194  403  72  —  —  669  
Other long-term assets12  7  —  —  —  —  19  
Total assets$3,852  $14,954  $1,438  $1,580  $1,360  $(4,214) $18,970  
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Short-term debt and current maturities of long-term debt$—  $66  $—  $2  $929  $—  $997  
Accounts payable—  395  —  59  —  —  454  
Accrued expenses and other liabilities—  572  118  55  2  —  747  
Total current liabilities—  1,033  118  116  931  —  2,198  
Long-term debt—  10,402  7  22  —  —  10,431  
Deferred taxes22  1,768  —  97  —  —  1,887  
Operating lease liabilities—  151  323  59  —  —  533  
Other long-term liabilities—  91  —  —  —  —  91  
Total liabilities22  13,445  448  294  931  —  15,140  
Total stockholders’ equity (deficit)3,830  1,509  990  1,286  429  (4,214) 3,830  
Total liabilities and stockholders’ equity (deficit)$3,852  $14,954  $1,438  $1,580  $1,360  $(4,214) $18,970  
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME
For the Three Months Ended June 30, 2020
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
ForeignSPV
Revenues:
Equipment rentals$—  $1,521  $—  $120  $1  $—  $1,642  
Sales of rental equipment—  161  —  15  —  —  176  
Sales of new equipment—  48  —  5  —  —  53  
Contractor supplies sales—  20  —  3  —  —  23  
Service and other revenues—  41  —  4  —  —  45  
Total revenues—  1,791  —  147  1  —  1,939  
Cost of revenues:
Cost of equipment rentals, excluding depreciation—  590  —  56  1  —  647  
Depreciation of rental equipment—  363  —  32  —  —  395  
Cost of rental equipment sales—  97  —  8  —  —  105  
Cost of new equipment sales—  42  —  4  —  —  46  
Cost of contractor supplies sales—  14  —  2  —  —  16  
Cost of service and other revenues—  27  —  2  —  —  29  
Total cost of revenues—  1,133  —  104  1  —  1,238  
Gross profit—  658  —  43  —  —  701  
Selling, general and administrative expenses(31) 225  —  25  7  (4) 222  
Restructuring charge—  3  —  —  —  —  3  
Non-rental depreciation and amortization6  81  —  8  —  —  95  
Operating income (loss)25  349  —  10  (7) 4  381  
Interest (income) expense, net(10) 137  —  —  3  —  130  
Other (income) expense, net(158) 180  —  12  (38) 4  —  
Income (loss) before provision (benefit) for income taxes193  32  —  (2) 28  —  251  
Provision (benefit) for income taxes46  (12) —  (1) 6  —  39  
Income (loss) before equity in net earnings (loss) of subsidiaries147  44  —  (1) 22  —  212  
Equity in net earnings (loss) of subsidiaries65  21  (2) —  —  (84) —  
Net income (loss)212  65  (2) (1) 22  (84) 212  
Other comprehensive income (loss)45  45  40  43  —  (128) 45  
Comprehensive income (loss)$257  $110  $38  $42  $22  $(212) $257  
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME
For the Three Months Ended June 30, 2019
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
 ForeignSPV
Revenues:
Equipment rentals$—  $1,798  $—  $161  $1  $—  $1,960  
Sales of rental equipment—  181  —  16  —  —  197  
Sales of new equipment—  53  —  7  —  —  60  
Contractor supplies sales—  24  —  3  —  —  27  
Service and other revenues—  39  —  7  —  —  46  
Total revenues—  2,095  —  194  1  —  2,290  
Cost of revenues:
Cost of equipment rentals, excluding depreciation—  692  —  76  1  —  769  
Depreciation of rental equipment—  367  —  32  —  —  399  
Cost of rental equipment sales—  108  —  8  —  —  116  
Cost of new equipment sales—  45  —  6  —  —  51  
Cost of contractor supplies sales—  17  —  2  —  —  19  
Cost of service and other revenues—  20  —  5  —  —  25  
Total cost of revenues—  1,249  —  129  1  —  1,379  
Gross profit—  846  —  65  —  —  911  
Selling, general and administrative expenses(32) 259  —  32  12  —  271  
Restructuring charge—  6  —  —  —  —  6  
Non-rental depreciation and amortization6  91  —  8  —  —  105  
Operating income (loss)26  490  —  25  (12) —  529  
Interest (income) expense, net(17) 189  —  —  8  —  180  
Other (income) expense, net(187) 213  —  15  (43) —  (2) 
Income before provision (benefit) for income taxes230  88  —  10  23  —  351  
Provision (benefit) for income taxes53  26  —  (3) 5  —  81  
Income before equity in net earnings (loss) of subsidiaries177  62  —  13  18  —  270  
Equity in net earnings (loss) of subsidiaries93  31  10  —  —  (134) —  
Net income (loss)270  93  10  13  18  (134) 270  
Other comprehensive income (loss)22  22  21  22  —  (65) 22  
Comprehensive income (loss)$292  $115  $31  $35  $18  $(199) $292  
 
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME
For the Six Months Ended June 30, 2020
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
ForeignSPV
Revenues:
Equipment rentals$—  $3,151  $—  $273  $1  $—  $3,425  
Sales of rental equipment—  350  —  34  —  —  384  
Sales of new equipment—  101  —  14  —  —  115  
Contractor supplies sales—  42  —  6  —  —  48  
Service and other revenues—  83  —  9  —  —  92  
Total revenues—  3,727  —  336  1  —  4,064  
Cost of revenues:
Cost of equipment rentals, excluding depreciation—  1,266  —  127  1  —  1,394  
Depreciation of rental equipment—  756  —  65  —  —  821  
Cost of rental equipment sales—  213  —  17  —  —  230  
Cost of new equipment sales—  88  —  12  —  —  100  
Cost of contractor supplies sales—  30  —  4  —  —  34  
Cost of service and other revenues—  52  —  5  —  —  57  
Total cost of revenues—  2,405  —  230  1  —  2,636  
Gross profit—  1,322  —  106  —  —  1,428  
Selling, general and administrative expenses6  415  —  50  23  (5) 489  
Restructuring charge—  5  —  —  —  —  5  
Non-rental depreciation and amortization11  168  —  16  —  —  195  
Operating (loss) income(17) 734  —  40  (23) 5  739  
Interest (income) expense, net(27) 285  —  —  8  —  266  
Other (income) expense, net(330) 376  —  26  (81) 5  (4) 
Income before provision (benefit) for income taxes340  73  —  14  50  —  477  
Provision (benefit) for income taxes80  (3) —  3  12  —  92  
Income before equity in net earnings (loss) of subsidiaries260  76  —  11  38  —  385  
Equity in net earnings (loss) of subsidiaries125  49  9  —  —  (183) —  
Net income (loss)385  125  9  11  38  (183) 385  
Other comprehensive (loss) income (61) (61) (55) (59) —  175  (61) 
Comprehensive income (loss)$324  $64  $(46) $(48) $38  $(8) $324  
CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME
For the Six Months Ended June 30, 2019
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
 ForeignSPV
Revenues:
Equipment rentals$—  $3,436  $—  $318  $1  $—  $3,755  
Sales of rental equipment—  354  —  35  —  —  389  
Sales of new equipment—  106  —  16  —  —  122  
Contractor supplies sales—  46  —  5  —  —  51  
Service and other revenues—  78  —  12  —  —  90  
Total revenues—  4,020  —  386  1  —  4,407  
Cost of revenues:
Cost of equipment rentals, excluding depreciation—  1,349  —  161  1  —  1,511  
Depreciation of rental equipment—  731  —  63  —  —  794  
Cost of rental equipment sales—  221  —  20  —  —  241  
Cost of new equipment sales—  91  —  14  —  —  105  
Cost of contractor supplies sales—  33  —  3  —  —  36  
Cost of service and other revenues—  41  —  7  —  —  48  
Total cost of revenues—  2,466  —  268  1  —  2,735  
Gross profit—  1,554  —  118  —  —  1,672  
Selling, general and administrative expenses21  442  —  59  29  —  551  
Merger related costs—  1  —  —  —  —  1  
Restructuring charge—  15  —  (1) —  —  14  
Non-rental depreciation and amortization10  182  —  17  —  —  209  
Operating (loss) income(31) 914  —  43  (29) —  897  
Interest (income) expense, net(33) 348  —  —  16  —  331  
Other (income) expense, net(359) 410  —  29  (85) —  (5) 
Income before provision (benefit) for income taxes361  156  —  14  40  —  571  
Provision for (benefit) income taxes76  42  —  (2) 10  —  126  
Income before equity in net earnings (loss) of subsidiaries285  114  —  16  30  —  445  
Equity in net earnings (loss) of subsidiaries160  46  12  —  —  (218) —  
Net income (loss)445  160  12  16  30  (218) 445  
Other comprehensive income (loss)43  43  42  41  —  (126) 43  
Comprehensive income (loss)$488  $203  $54  $57  $30  $(344) $488  
CONDENSED CONSOLIDATING CASH FLOW INFORMATION
For the Six Months Ended June 30, 2020
 
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
ForeignSPV
Net cash provided by operating activities$40  $1,047  $—  $86  $288  $—  $1,461  
Net cash (used in) provided by investing activities(40) 2  —  (3) —  —  (41) 
Net cash used in financing activities—  (1,041) —  (16) (288) —  (1,345) 
Effect of foreign exchange rates—  —  —  —  —  —  —  
Net increase in cash and cash equivalents—  8  —  67  —  —  75  
Cash and cash equivalents at beginning of period—  28  —  24  —  —  52  
Cash and cash equivalents at end of period$—  $36  $—  $91  $—  $—  $127  
CONDENSED CONSOLIDATING CASH FLOW INFORMATION
For the Six Months Ended June 30, 2019
 
 ParentURNAGuarantor
Subsidiaries		Non-Guarantor
Subsidiaries		EliminationsTotal
 ForeignSPV
Net cash provided by operating activities$9  $1,457  $—  $83  $41  $—  $1,590  
Net cash used in investing activities(9) (943) —  (54) —  —  (1,006) 
Net cash used in financing activities—  (464) —  (47) (41) —  (552) 
Effect of foreign exchange rates—  —  —  —  —  —  —  
Net increase (decrease) in cash and cash equivalents—  50  —  (18) —  —  32  
Cash and cash equivalents at beginning of period—  1  —  42  —  —  43  
Cash and cash equivalents at end of period$—  $51  $—  $24  $—  $—  $75