Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

Our reportable segments are i) general rentals and ii) specialty (formerly "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 specialty 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, iii) fluid solutions equipment primarily used for fluid containment, transfer and treatment, and iv) mobile storage equipment and modular office space. The specialty 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 and iv) Fluid Solutions Europe regions, and v) the Mobile Storage region. The Mobile Storage region is comprised of locations acquired in the May 2021 acquisition of General Finance, which is discussed in note 3 to the condensed consolidated financial statements. The specialty segment’s customers include construction companies involved in infrastructure projects, municipalities and industrial companies. This segment primarily operates in the United States and Canada, and has a limited presence in Europe, Australia and New Zealand.

The following tables set forth financial information by segment.  

	General rentals		Specialty		Total
Three Months Ended June 30, 2021
Equipment rentals	$	1,466	$	485	$	1,951
Sales of rental equipment	166		28		194
Sales of new equipment	38		19		57
Contractor supplies sales	18		9		27
Service and other revenues	50		8		58
Total revenue	1,738		549		2,287
Depreciation and amortization expense	392		83		475
Equipment rentals gross profit	526		225		751
Three Months Ended June 30, 2020
Equipment rentals	$	1,255	$	387	$	1,642
Sales of rental equipment	158		18		176
Sales of new equipment	45		8		53
Contractor supplies sales	15		8		23
Service and other revenues	39		6		45
Total revenue	1,512		427		1,939
Depreciation and amortization expense	401		89		490
Equipment rentals gross profit	419		181		600
Six Months Ended June 30, 2021
Equipment rentals	$	2,739	$	879	$	3,618
Sales of rental equipment	413		48		461
Sales of new equipment	80		26		106
Contractor supplies sales	34		17		51
Service and other revenues	94		14		108
Total revenue	3,360		984		4,344
Depreciation and amortization expense	772		169		941
Equipment rentals gross profit	937		391		1,328
Capital expenditures	1,116		145		1,261
Six Months Ended June 30, 2020
Equipment rentals	$	2,649	$	776	$	3,425
Sales of rental equipment	348		36		384
Sales of new equipment	98		17		115
Contractor supplies sales	31		17		48
Service and other revenues	80		12		92
Total revenue	3,206		858		4,064
Depreciation and amortization expense	838		178		1,016
Equipment rentals gross profit	867		343		1,210
Capital expenditures	377		78		455

	June 30, 2021		December 31, 2020
Total reportable segment assets
General rentals	$	15,587	$	15,051
Specialty (1)	4,054		2,817
Total assets	$	19,641	$	17,868

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(1)The increase in the specialty segment assets primarily reflects the impact of the General Finance acquisition discussed in note 3 to the condensed consolidated financial statements.

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				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Total equipment rentals gross profit	$	751	$	600	$	1,328	$	1,210
Gross profit from other lines of business	124		101		261		218
Selling, general and administrative expenses	(301)		(222)		(551)		(489)
Merger related costs (1)	(3)		—		(3)		—
Restructuring charge (2)	—		(3)		(1)		(5)
Non-rental depreciation and amortization	(90)		(95)		(181)		(195)
Interest expense, net	(100)		(130)		(199)		(266)
Other (expense) income, net	(4)		—		(2)		4
Income before provision for income taxes	$	377	$	251	$	652	$	477

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(1)Reflects transaction costs associated with the General Finance acquisition discussed in note 3 to the condensed consolidated financial statements. Merger related costs only include costs associated with major acquisitions that significantly impact our operations. For additional information, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations-Results of Operations-Other costs/(income)-merger related costs" below.

(2)Primarily reflects severance and branch closure charges associated with our restructuring programs. For additional information, see note 5 to our condensed consolidated financial statements.