Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SEC Schedule, 12-09, Schedule of Valuation and Qualifying Accounts Disclosure

The rollforward of our allowance for doubtful accounts (in total, and associated with revenues arising from both Topic 606 and Topic 842/840) is shown below.

	Year ended December 31,
	2020		2019		2018
Beginning balance	$	103	$	93	$	68
Acquired	—		2		14
Charged to costs and expenses (1)	9		8		45
Charged to revenue (2)	25		34		—
Deductions (3)	(29)		(34)		(34)
Ending balance	$	108	$	103	$	93

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(1)    Reflects bad debt expenses recognized within selling, general and administrative expenses (associated with Topic 606 revenues).

(2)    Primarily reflects doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue (primarily associated with Topic 842 revenues). We adopted Topic 842 in 2019 using a transition method that does not require application to periods prior to adoption.

(3)    Represents write-offs of accounts, net of immaterial recoveries.

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS

UNITED RENTALS, INC.

(In millions)

Description	Balance at Beginning of Period		Acquired		Charged to Costs and Expenses			Charged to Revenue			Deductions			Balance at End of Period
Year Ended December 31, 2020:
Allowance for doubtful accounts	$	103	$	—	$	9	(a)	$	25	(a)	$	29	(b)	$	108
Reserve for obsolescence and shrinkage	10		—		34			—			36		(c)	8
Self-insurance reserve	121		—		169			—			163		(d)	127
Year Ended December 31, 2019:
Allowance for doubtful accounts	$	93	$	2	$	8	(a)	$	34	(a)	$	34	(b)	$	103
Reserve for obsolescence and shrinkage	5		4		40			—			39		(c)	10
Self-insurance reserve	106		—		180			—			165		(d)	121
Year Ended December 31, 2018:
Allowance for doubtful accounts	$	68	$	14	$	45	(a)	$	—	(a)	$	34	(b)	$	93
Reserve for obsolescence and shrinkage	7		1		26			—			29		(c)	5
Self-insurance reserve	100		5		144			—			143		(d)	106

The above information reflects the continuing operations of the Company for the periods presented. Additionally, because the Company has retained certain self-insurance liabilities associated with the discontinued traffic control business, those amounts have been included as well.

(a)    Amounts charged to cost and expenses reflect bad debt expenses recognized within selling, general and administrative expenses. The amounts charged to revenue primarily reflect doubtful accounts associated with lease revenues that were recognized as a reduction to equipment rentals revenue. In 2019, we adopted an updated lease accounting standard (see note 13 to the consolidated financial statements for further detail) that requires that we recognize doubtful accounts associated with lease revenues as a reduction to equipment rentals revenue. We adopted the updated lease accounting standard using a transition method that does not require application to periods prior to adoption.

(b)    Represents write-offs of accounts, net of recoveries.

(c)    Represents write-offs.

(d)    Represents payments.