Segment Information

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

Segment Information

Segment Information

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 September 30, 2020
Equipment rentals	$	1,391	$	470	$	1,861
Sales of rental equipment	182		17		199
Sales of new equipment	47		7		54
Contractor supplies sales	17		8		25
Service and other revenues	42		6		48
Total revenue	1,679		508		2,187
Depreciation and amortization expense	402		90		492
Equipment rentals gross profit	543		234		777
Three Months Ended September 30, 2019
Equipment rentals	$	1,642	$	505	$	2,147
Sales of rental equipment	183		15		198
Sales of new equipment	60		7		67
Contractor supplies sales	17		10		27
Service and other revenues	42		7		49
Total revenue	1,944		544		2,488
Depreciation and amortization expense	426		93		519
Equipment rentals gross profit	671		246		917
Nine Months Ended September 30, 2020
Equipment rentals	$	4,040	$	1,246	$	5,286
Sales of rental equipment	530		53		583
Sales of new equipment	145		24		169
Contractor supplies sales	48		25		73
Service and other revenues	122		18		140
Total revenue	4,885		1,366		6,251
Depreciation and amortization expense	1,240		268		1,508
Equipment rentals gross profit	1,410		577		1,987
Capital expenditures	771		159		930
Nine Months Ended September 30, 2019
Equipment rentals	$	4,592	$	1,310	$	5,902
Sales of rental equipment	541		46		587
Sales of new equipment	167		22		189
Contractor supplies sales	53		25		78
Service and other revenues	119		20		139
Total revenue	5,472		1,423		6,895
Depreciation and amortization expense	1,254		268		1,522
Equipment rentals gross profit	1,765		602		2,367
Capital expenditures	1,800		331		2,131

	September 30, 2020		December 31, 2019
Total reportable segment assets
General rentals	$	15,039	$	16,036
Trench, power and fluid solutions	2,869		2,934
Total assets	$	17,908	$	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				Nine Months Ended
	September 30,				September 30,
	2020		2019		2020		2019
Total equipment rentals gross profit	$	777	$	917	$	1,987	$	2,367
Gross profit from other lines of business	109		116		327		338
Selling, general and administrative expenses	(232)		(273)		(721)		(824)
Merger related costs	—		—		—		(1)
Restructuring charge	(6)		(2)		(11)		(16)
Non-rental depreciation and amortization	(97)		(102)		(292)		(311)
Interest expense, net	(278)		(147)		(544)		(478)
Other income, net	2		1		6		6
Income before provision for income taxes	$	275	$	510	$	752	$	1,081